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that he has the burden of production regarding the additions to
tax because the examination in this case began after July 22,
1998, but claimed that he does not bear the burden of proof on
any issue in this case. See Internal Revenue Service
Restructuring & Reform Act of 1998, Pub. L. 105-206, sec.
3001(c), 112 Stat. 685, 727 (providing that sec. 7491 is
applicable to court proceedings arising in connection with
examinations commenced after July 22, 1998); sec. 7491(a), (c).
A. The Deficiencies
As a general rule, the taxpayer bears the burden of proving
the Commissioner's deficiency determinations incorrect. Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Section
7491(a), however, provides that if a taxpayer introduces credible
evidence and meets certain other prerequisites, the Commissioner
shall bear the burden of proof with respect to factual issues
relating to the liability of the taxpayer for a tax imposed under
subtitle A or B of the Code.
Petitioner failed to appear and did not introduce any
evidence. Therefore, we conclude that the burden of proof is not
placed on respondent pursuant to section 7491(a). Accordingly,
we sustain respondent’s deficiency determinations.
B. Additions to Tax
Section 7491(c) provides that the Commissioner shall bear
the burden of production with respect to the liability of any
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