TAX COURT OPINION

Case: William Alan Ketner
Docket Number: 22843-11
Judge: Foley
Opinion Type: bench
Filed: 06/05/2013
Pages: 4

UNITED STATES TAX COURT WASHINGTON, DC 20217 WILLIAM ALAN KETNER, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent KVC ) ) ) ) ) Docket No. 22843-11. ) ) ) ) ) OR D E R Pursuant to Rule 152(b), Tax Court Rules of Practice and Procedure, it is ORDERED that the Clerk of the Court shall transmit herewith to petitioner and to respondent a copy of the pages of the transcript of the trial in the above case before Judge Maurice B. Foley at Miami, Florida, containing his oral findings of fact and opinion rendered at the trial session at which the case was heard. In accordance with the oral findings of fact and opinion, decision will be entered under Rule 155. (Signed) Maurice B. Foley Judge Dated: Washington, D.C. June 5, 2013 SERVED Jun 06 2013 Capital Reporting Company 3 1 Bench Opinion by Judge Maurice B. Foley 2 April 24, 2013 3 William Alan Ketner v. Commissioner 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Docket No. 22843-11 THE COURT: The Court has decided to render oral findings of fact and opinion and the following represents the Court's oral findings of fact and opinion. The oral findings of fact and opinion shall not be relied upon as precedent in any other case. This bench opinion is made pursuant to the authority granted by section 7459(b) of the Internal Revenue Code of 1986, as amended, and Rule 152 of the Tax Court Rules of Practice and Procedure. All section references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. The facts are as follows: Petitioner timely filed his 2010 Federal income tax return on which he reported $7,200 of "Wages, salaries, and tips". Petitioner attached the following statement to his return: "During the year of 2010 I earned about $7,200.00. I work as a sometimes handyman. I am paid with small checks, and 25 more often, small amounts of cash." 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 On July 13, 2011, respondent sent petitioner a notice of deficiency relating to 2010. In the notice, respondent determined that petitioner received self-employment income relating to his handyman services and was liable for self-employment tax. On October 5, 2011, petitioner, while residing in Florida, filed his petition with the Court. Discussion of legal authorities: Section 1401 imposes a tax upon a taxpayer's self-employment income. Self-employment income consists of gross income derived by an individual from any trade or business carried on by such individual. Sec. 1402(a). The self-employment tax, however, does not apply to compensation paid to an employee. Sec. 1402(c) (2). Pursuant to section 7491(a), petitioner has the burden of proof unless he introduces credible evidence relating to the issue that would shift the burden to respondent. See Rule 142(a). This section is inapplicable because petitioner did not maintain adequate records and failed to introduce credible evidence. See sec. 7491(a). Petitioner provided services as an independent contractor and failed to introduce any evidence to the contrary. See Clackamas 25 Gastroenterology Associates, P.C. v. Wells, 53 U.S. n 6 P 866.488.DEPO www.CapitalReportingCompany.com Capital Reporting Company 5 440, 448-451 (2003); Weber v. Commissioner, 103 T.C. 378, 386-388 (1994). Accordingly, petitioner was self-employed during 2010 and the earnings in dispute are subject to the tax imposed by section 1401. Contentions we have not addressed are irrelevant, moot or meritless. This concludes the Court's oral findings of fact and opinion in this case. (Whereupon, at 11:51 a.m., the above- entitled matter was concluded.) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 866.488.DEPO www.CapitalReportingCompany.com