Joseph T. McQuatters - Page 7

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                  Petitioner asserts that respondent has not carried the                                
            burden of proving the accuracy of the disputed Forms 1099.                                  
            Although petitioner argues that neither of the Forms 1099 is                                
            valid, at trial, petitioner addressed only the validity of the                              
            Form 1099 issued to him by Masterguard.  For support, petitioner                            
            cites section 6201(d) and claims that he has fully cooperated                               
            with respondent by granting access to all records and information                           
            for 1988 in his possession.                                                                 
                  Section 6201(d), amended by section 602, Taxpayer Bill of                             
            Rights 2, Pub. L. 104-168, 110 Stat. 1452, 1463 (1996), is                                  
            effective as of July 30, 1996.  The petition was filed on June                              
            24, 1996, and the trial in this case was held on February 5,                                
            1997.  We will assume arguendo that section 6201(d), as amended,                            
            is applicable in this case.  Section 6201(d) provides that if the                           
            taxpayer, in a court proceeding, asserts a reasonable dispute                               
            with respect to the income reported on an information return, and                           
            fully cooperates with the Commissioner, then the Commissioner                               
            shall have the burden of producing reasonable and probative                                 
            information in addition to the information return.2  See Dennis                             

            2           Sec. 6201(d) provides:                                                          
                        SEC. 6201(d).  Required Reasonable Verification of                              
                  Information Returns.--In any court proceeding, if a                                   
                  taxpayer asserts a reasonable dispute with respect to                                 
                  any item of income reported on an information return                                  
                  filed with the Secretary * * * by a third party and the                               
                  taxpayer has fully cooperated with the Secretary                                      
                  (including providing, within a reasonable period of                                   
                                                                          (continued...)                




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