116 T.C. No. 28
UNITED STATES TAX COURT
EARL G. HIGBEE AND LESLEY A. HIGBEE, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 14035-99. Filed June 6, 2001.
Ps filed a petition seeking redeterminations of
R’s disallowance of several deductions and imposition
of an addition to tax and accuracy-related penalty.
The parties settled most of the issues regarding the
disallowed deductions except one regarding certain
Schedule C deductions. At trial, Ps claimed additional
deductions on account of a casualty loss, charitable
contributions, unreimbursed employee expenses, and
Schedule C and E expenses that were neither claimed by
Ps on their tax returns nor raised in the notice of
deficiency. The examination in the instant case took
place after the effective date of sec. 7491, I.R.C., as
amended by the Internal Revenue Service Restructuring
and Reform Act of 1998, Pub. L. 105-206, sec. 3001, 112
Stat. 685, 726.
Held: Because Ps failed to introduce credible
evidence, Ps failed to meet the requirements of sec.
7491(a), I.R.C., as amended, so as to place the burden
of proof on R for the factual issues relating to the
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