- 12 -
Med. & surg. equip. 14,766 14,766
Accum. depr. (14,766) (14,766)
Automobiles 143,767 115,751
Accum. depr. (76,690) (29,455)
Other assets
Accrued int. exp. 348
Prepaid rent 1,274 1,274
Total assets 141,206 130,662
OPINION
I. Burden of Proof
A. Introduction
Petitioner claims that, with respect to the principal
adjustments, respondent has raised a new matter, and, therefore,
with respect to that matter, respondent bears the burden of
proof. We disagree that respondent has raised a new matter.
B. Rule 142(a)
Rule 142 governs the burden of proof.3 In pertinent part,
Rule 142(a) provides: “The burden of proof shall be upon the
petitioner, * * * except that, in respect of any new matter,
* * * it shall be upon the respondent.”
3 The Internal Revenue Service Restructuring and Reform Act
of 1998 (RRA 1998), Pub. L. 105-206, sec. 3001, 112 Stat. 685,
727, added sec. 7491, which shifts the burden of proof to the
Secretary in certain circumstances. Sec. 7491 is applicable to
“court proceedings arising in connection with examinations
commencing after the date of the enactment of this Act.” RRA
1998, sec. 3001(c). RRA 1998 was enacted on July 22, 1998, which
date is after the date (June 25, 1998) of respondent’s notice of
deficiency in this case. Accordingly, sec. 7491 is inapplicable
to this case.
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011