- 18 - with respondent under section 7491(a)(1). In pertinent part, section 7491(a)(2) provides: SEC. 7491. BURDEN OF PROOF. * * * * * * * * (2) Limitations.--Paragraph (1) shall apply with respect to an issue only if-- (A) the taxpayer has complied with the requirements under this title to substantiate any item; [and] (B) the taxpayer has maintained all records required under this title and has cooperated with reasonable requests by the Secretary for witnesses, information, documents, meetings, and interviews; * * * The burden is on the taxpayer to show that the prerequisites are satisfied. See H. Conf. Rept. 105-599, at 240-241 (1998), 1998-3 C.B. 747, 994-995. At trial, counsel for the J. and C. Shirleys maintained that her clients had satisfied the prerequisites. On brief, however, the J. and C. Shirleys propose no findings with respect to either’s satisfaction of the prerequisites, nor do they argue that the prerequisites are satisfied. We have made findings adequate for us to conclude that they did not cooperate in respondent’s examination of their 1995 returns. The J. Shirleys and, likewise, the C. Shirleys have failed to prove that they have satisfied the prerequisites. Accordingly, respondent does not on account of section 7491(a) bear the burden of proof with respect to either Shirleys’ liability for tax.Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
Last modified: May 25, 2011