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Petitioner acknowledges that his employers did not reimburse
him for any expense he incurred related to his employment. Thus,
his employment-related expenses must be reported on Schedule A.
In their petition, petitioners alleged that respondent bears
the burden of discrediting their claimed deductions. Section
7491, effective for court proceedings arising in connection with
examinations commencing after July 22, 1998, shifts the burden of
proof to the Commissioner, under certain circumstances, where a
taxpayer introduces credible evidence with respect to factual
issues relevant to ascertaining the taxpayer's liability for tax.
See Internal Revenue Service Restructuring & Reform Act of 1998,
Pub. L. 105-206, sec. 3001, 112 Stat. 685, 724. Respondent
argues that the examination of petitioner’s 1996 income tax
liability began on June 22, 1998. Petitioners did not address
this issue at trial. Furthermore, petitioners have failed to
present credible evidence with respect to the deductions at issue.
Accordingly, we uphold respondent’s determinations.
To reflect the foregoing,
Decision will be entered
for respondent.
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