- 10 - After the order of discharge in petitioners' bankruptcy proceeding was entered on July 7, 1992, respondent issued a notice of deficiency to petitioners on February 13, 1993. In the notice of deficiency, respondent disallowed the partnership losses and investment tax credits claimed by petitioners on their 1983 and 1984 returns and determined the additions to tax and increased rate of interest under section 6621(c). The Commissioner's determinations in a notice of deficiency are presumed correct, and the taxpayer bears the burden of proving that those determinations are erroneous. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). This burden of proof extends as well to the additions to tax and the increased rate of interest. Rule 142(a); Bixby v. Commissioner, 58 T.C. 757, 791 (1972). However, with respect to respondent's amended answer, relating to an increase in the deficiency in tax for the year 1980 and correspondent increases in the additions to tax and increased interest, the burden of proof is on respondent, since the claim by respondent constitutes "new matter". Rule 142(a). The record reflects that respondent met that burden in that petitioners' income tax return for 1983 erroneously reflected a tax computation for married persons filing separately when in fact the computation should have been based on rates for married persons filing jointly, and by petitioner's acknowledgment ofPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011