- 10 -
OPINION
Respondent’s determinations are entitled to a presumption of
correctness, and petitioner bears the burden of proof with
respect to all issues in this case. Rule 142(a). Petitioner
must substantiate the amounts and payments of claimed expenses
and demonstrate the validity of his claims of deductions
therefor. Hradesky v. Commissioner, 65 T.C. 87, 89-90 (1975),
affd. per curiam 540 F.2d 821 (5th Cir. 1976).
Each of respondent’s determinations arose from one aspect or
another of petitioner’s farming operations in prior years.
Because of his failures to maintain and offer in evidence records
and receipts or other required documentation, petitioner has not
carried his burden of proof and persuasion on any of his
substantive claims. By reason of his failures to provide any
explanation or justification for his errors and omissions in the
preparation and filing of his 1989 return, petitioner has not
carried his burden on the addition and penalty issues.
Issue 1: Farm Rents
Petitioner contends that Cheyenne owed Mesa $60,000 and
Teton $50,000 for rental obligations incurred by Cheyenne and
petitioner in years prior to 1989.
Petitioner did not schedule any such claims against himself
in his bankruptcy proceeding, and the bankruptcy petitions he
filed on behalf of Cheyenne were dismissed for failure to file
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011