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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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Last modified: May 25, 2011