                          T.C. Memo. 1998-76



                        UNITED STATES TAX COURT



                   DWAYNE WORTH CHAMP, Petitioner v.
             COMMISSIONER OF INTERNAL REVENUE, Respondent



        Docket No. 18866-96.                 Filed February 23, 1998.



        Dwayne Worth Champ, pro se.

        Cheryl M. D. Rees, for respondent.



                          MEMORANDUM OPINION


        DINAN, Special Trial Judge:   This case was heard pursuant

to the provisions of section 7443A(b)(3) and Rules 180, 181, and

182.1

        1
          Unless otherwise indicated, all section references are
to the Internal Revenue Code in effect for the taxable year in
issue. All Rule references are to the Tax Court Rules of
Practice and Procedure.
                               - 2 -

     Respondent determined a deficiency in petitioner's Federal

income tax for 1993 in the amount of $1,416.

     The issue for decision is whether petitioner received and

failed to report income during 1993.

     Some of the facts have been stipulated and are so found.

The stipulations of fact and attached exhibits are incorporated

herein by this reference.   Petitioner resided in Charlottesville,

Virginia, on the date the petition was filed in this case.

     Petitioner's occupation was not revealed in his petition or

by the evidence presented at trial.    From the limited record in

this case, we have gleaned that petitioner worked as a

construction laborer.   On his 1993 return, petitioner reported

receiving the following amounts during 1993:

          S. Di Gregorio & Son, Inc.      $7,692
          L. F. Jennings, Inc.             1,587
          Dulles Drywall, Inc.               870
          Charles Town Races, Inc.           684

     In the statutory notice of deficiency, respondent determined

that petitioner received and failed to report:     (1) Employee

wages in the amount of $300 from American Property Construction

Company (American); (2) nonemployee compensation in the amount of

$2,099 from D&B Associates, Inc. (D&B); and (3) nonemployee

compensation in the amount of $2,025 from Bryant Dickinson

Drywall (Bryant).

     Respondent's determinations in the statutory notice of

deficiency are presumed to be correct, and petitioner bears the
                               - 3 -

burden of proving otherwise.   Rule 142(a); Welch v. Helvering,

290 U.S. 111, 115 (1933).   Section 61(a) includes in gross income

all income from whatever source derived including, but not

limited to, compensation for services.   Sec. 61(a)(1).

American

      Petitioner concedes that he received $300 for services

performed as American's employee.   We hold that such amount is

includable in his gross income.   Sec. 61(a)(1).

D&B

      Petitioner concedes that he received nonemployee

compensation from D&B for services performed during 1993.    He

disputes, however, respondent's determination that he received a

total of $2,099 from D&B.   Respondent submitted photocopies of 10

of D&B's canceled checks made out to petitioner in the total

amount of $2,099.   At trial, petitioner verified his signature on

photocopies of the back of each of the 10 checks.   Based on this

evidence and petitioner's concession, we find that he received

nonemployee compensation from D&B in the amount of $2,099 during

1993 and hold that such amount is includable in his gross income

and is subject to self-employment taxes.

Bryant

      Petitioner concedes that he received $2,025 for services

performed for Bryant.   He does not concede, however, that he is

subject to self-employment taxes for such amount.
                                 - 4 -

     Section 1401(a) imposes a tax on self-employment income for

old-age, survivors, and disability insurance.       An additional tax

for hospital insurance is imposed on self-employment income

pursuant to section 1401(b).   Self-employment income is defined

as the net earnings from self-employment derived by an individual

during any taxable year.   Sec. 1402(b).      The phrase "net earnings

from self-employment" is in turn defined as the gross income

derived by an individual from any trade or business carried on by

such individual, less any attributable deductions.       Sec. 1402(a).

     Petitioner presented no evidence or testimony which supports

a finding contrary to respondent's determination, and we

accordingly sustain such determination.

     To reflect the foregoing,

                                         Decision will be entered

                                 for respondent.
