Solomon Mayer - Page 5




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                  Section 6201(d) provides that if a taxpayer, in a court                              
            proceeding, asserts a reasonable dispute with respect to income                            
            reported on an information return and has fully cooperated with                            
            respondent, then the burden of producing reasonable and probative                          
            information relating to the alleged income may shift to                                    
            respondent.  See Hardy v. Commissioner, 181 F.3d 1002 (9th Cir.                            
            1999), affg. T.C. Memo. 1997-97; Dennis v. Commissioner,                                   
            T.C. Memo. 1997-275.  Section 6201(d) provides as follows:                                 

                  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 under subpart B or C of part III of                                        
                  subchapter A of chapter 61 by a third party and the                                  
                  taxpayer has fully cooperated with the Secretary                                     
                  (including providing, within a reasonable period of                                  
                  time, access to and inspection of all witnesses,                                     
                  information, and documents within the control of the                                 
                  taxpayer as reasonably requested by the Secretary), the                              
                  Secretary shall have the burden of producing reasonable                              
                  and probative information concerning such deficiency in                              
                  addition to such information return.                                                 

                  The evidence indicates that petitioner has not satisfied the                         
            cooperation requirement of section 6201(d).  Petitioner failed to                          
            file his Federal income tax returns for the years in issue.                                
            Petitioner produced minimal records for respondent’s                                       
            representatives.  Petitioner is not entitled to the benefits of                            
            section 6201(d).                                                                           







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