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deficiency (or portion). This subparagraph
shall not apply where the individual with
actual knowledge establishes that such
individual signed the return under duress.
II. Preliminary Matters
A. Burden of Proof
We begin with a threshold observation regarding burden of
proof. In general, the Commissioner’s determinations are
presumed correct, and the taxpayer bears the burden of proving
otherwise. Rule 142(a). Although recently enacted section 7491
may operate in specified circumstances to place the burden on the
Commissioner, the statute is effective only for court proceedings
that arise in connection with examinations commencing after July
22, 1998. RRA sec. 3001(c), 112 Stat. 727. With respect to the
case at bar, the parties have stipulated that the examination of
Privilege House which led to the constructive dividends pertinent
here began on February 6, 1997, the record is bereft of any other
evidence that would require applicability of section 7491, and
petitioner has at no time so argued. We therefore are satisfied
that petitioner bears the burden of establishing his entitlement
to relief from joint and several liability under the general
rules.
Furthermore, we pause to observe that section 7491(a)(3)
provides that the burden-shifting provisions referenced above do
not apply “to any issue if any other provision of this title
provides for a specific burden of proof with respect to such
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