- 65 - Trading than gross receipts reported in its 1993 Form 1065, it was possible that some of MZ Trading’s gross receipts for 1993 were deposited into bank accounts other than MZ Trading’s bank account(s) or that MZ Trading did not deposit some of those gross receipts. The statements of Mr. Oliveras in Mr. Oliveras’ summary on which petitioner relies do not establish that any of MZ Trading’s gross receipts for 1993 were shifted or deposited into any of petitioner’s accounts during that year. Issues Relating to the Burden of Proof It is petitioner’s position that respondent has the burden of proving that for each of the years 1991, 1992, and 1993 each of the deposits into petitioner’s accounts that remains at issue is taxable. In support of that position, petitioner asserts: Section 7522 requires the notice of deficiency to contain a description of the basis for the commis- sioner’s tax determinations. Respondent’s notices of deficiency are based on the bank deposits analysis, and do not contain a detailed description of the deposits. Specific items of deposit must be relied on to prove whether the deposits are nontaxable, which requires the presentation of different evidence to prove specific items not in the notices of deficiency. At the same time, respondent is the party objecting to the presen- tation of the documents that it prepared detailing the specific deposits. Therefore, it is respondent who should have the burden of proof on these specific deposit issues, as they are “new matters” within Rule 142(a), United States Tax Court Rules of Practice and Procedure, and pursuant to the holding of Shea v. Commissioner, 112 T.C. 14 (1999). Section 7522(a) requires that a notice of deficiency “de- scribe the basis” for the tax deficiency. A new matter is raised when the basis or the theory on which the Commissioner of Inter- nal Revenue (Commissioner) relies was not stated or described inPage: Previous 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 Next
Last modified: May 25, 2011