- 8 - 7491 is applicable to court proceedings arising in connection with examinations commenced after July 22, 1998). Under section 7491(a), Congress provided that if a taxpayer presents credible evidence and meets certain other prerequisites, the Commissioner shall bear the burden of proof with regard to factual issues relating to the liability of the taxpayer for a tax imposed under subtitle A or B. Because petitioners failed to appear and present credible evidence, the burden of proof is not placed on respondent under section 7491(a). As to the accuracy-related penalties imposed by respondent, Congress provided in section 7491(c) that the Commissioner bears the burden of production in any court proceeding with regard to the liability of the taxpayer for such penalties. In Higbee v. Commissioner, 116 T.C. ___, ___ (2001) (slip op. at 15), we stated that this provision requires that the Commissioner come forward with sufficient evidence indicating that it is appropriate to impose the relevant penalties. However, the Commissioner does not have the obligation to introduce evidence regarding elements such as reasonable cause or substantial authority. See id. Petitioners failed to appear at trial and submitted only tax protester type material to the Court. During the litigation, respondent attempted to obtain informal and formal discovery from petitioners without success. As noted in our backgroundPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011