Philip A. Sellers - Page 10




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          B.  Burden of Proof                                                         
               Under generally applicable principles, petitioners bear the            
          burden of proving entitlement to a deduction resulting from                 
          petitioner’s advances to Gandy’s.  See Rule 142(a); United States           
          v. Janis, 428 U.S. 433, 441-442 (1976); Welch v. Helvering, 290             
          U.S. 111, 115 (1933); Amey & Monge, Inc. v. Commissioner, 808               
          F.2d 758, 761 (11th Cir. 1987), affg. T.C. Memo. 1984-642.                  
               Petitioners argue that the notice of deficiency failed to              
          set forth the reasons for respondent’s determinations with                  
          sufficient specificity to satisfy the requirements of section               
          7522 and that respondent should therefore bear the burden of                
          proof.                                                                      
               Section 7522(a) provides in relevant part that any notice of           
          deficiency “shall describe the basis for, and identify the                  
          amounts (if any) of, the tax due * * *.  An inadequate                      
          description under the preceding sentence shall not invalidate               
          such notice.”                                                               
               The purpose of section 7522 is to give the taxpayer notice             
          of the Commissioner’s basis for determining a deficiency.  See              
          Shea v. Commissioner, 112 T.C. 183, 196 (1999).  Here the notice            
          of deficiency sufficiently apprised petitioners of the basis for            
          respondent’s deficiency determination and identified the amount             
          of tax due.  At trial, respondent has taken no position that                
          would require petitioners to present evidence different from that           






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