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issues that was filed in the related cases and by reason of
our finding that the advances were not loans to WAI.
Validity of the Notices of Deficiency for 1989
In their opening brief, petitioners argue that the
notices of deficiency issued for taxable year 1989 should
be dismissed because they do not explain how the
deficiencies determined for that year were calculated,
other than by stating that the deficiencies result from a
carryforward of the 1988 redetermination. Petitioners also
argue that respondent failed to "offer a single witness,
including the revenue agent who prepared the Notices, to
explain how they were calculated." Petitioners maintain
that because respondent failed to present such testimony,
the burden of proof with regard to the 1989 deficiencies
shifted to respondent.
We disagree. Both notices of deficiency adequately
explain respondent's determination of deficiencies for 1987
and 1989. Petitioners bear the burden of proving that
respondent's determination of a deficiency is incorrect.
Rule 142(a). Petitioners have not met this burden, and
have not shown any reason why the burden should be shifted
to respondent.
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