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On July 24, 1996, the Commissioner issued to petitioner a
final adverse determination letter. The letter stated:
Our adverse determination was made for the following
reason(s):
You did not meet the operational test under
section 1.501(c)(3)-1 of the Income Tax
Regulations. In order to qualify under Code
section 501(c)(3), an organization must be
both organized and operated exclusively for
one or more purposes specified in that
section. You did not describe your proposed
activities in sufficient detail as required
by section 1.501(c)(3)-1 of the Regulations.
Discussion
The Commissioner has determined that petitioner does not
meet the requirements of section 501(c)(3). Petitioner must
prove this determination wrong. See Rule 217(c)(2)(A); Church of
Scientology of Cal. v. Commissioner, 83 T.C. 381, 491 (1984),
affd. 823 F.2d 1310 (9th Cir. 1987); Church By Mail, Inc. v.
Commissioner, 765 F.2d 1387, 1391 (9th Cir. 1985), affg. T.C.
Memo. 1984-349. In order to do so, the administrative record
upon which this case is to be decided must contain enough
evidence to support a finding contrary to the grounds set forth
in the notice of determination, and petitioner must demonstrate
the merits of its claim by at least a preponderance of the
evidence. See Estate of Gilford v. Commissioner, 88 T.C. 38, 51
(1987); see also Rule 217(c)(2)(A); Fed. R. Evid. 301. If
petitioner fails its burden, the Commissioner will prevail. See
Rockwell v. Commissioner, 512 F.2d 882, 885 (9th Cir. 1975),
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