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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 of
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