Andrea Cipriano - Page 8




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                              (A) the taxpayer has complied with the                  
                         requirements under this title to substantiate any            
                         item;                                                        
                              (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 legislative history of section 7491(a) makes it clear              
          that before the burden of proof will be placed on respondent,               
          taxpayers have the burden of proving that they satisfied each of            
          the above requirements of section 7491.  The legislative history            
          states as follows:                                                          

                    The taxpayer has the burden of proving that                       
                    it meets each of these conditions, because                        
                    they are necessary prerequisites to                               
                    establishing that the burden of proof is on                       
                    the Secretary.  [H. Conf. Rept. 105-599, at                       
                    239 (1998), 1998-3 C.B. 747, 993.]                                

               A shift in the burden of proof under section 7491 is                   
          available only in court proceedings arising in connection with              
          examinations by respondent that commenced after July 22, 1998,              
          the effective date of section 7491.  See RRA 1998 sec.                      
          3001(c)(2), 112 Stat. 727.                                                  
               For 1994, because respondent’s examination of petitioner’s             
          1994 Federal income tax commenced in August of 1998, or                     
          thereafter, it is clear that section 7491 generally applies to              
          petitioner.  Petitioner contends that for 1994 she has met the              






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