- 26 - Respondent also determined to disallow the deduction that petitioners claimed in their 1996 joint return for the $2,000 contribution made to Ms. Whitehead’s IRA during that year. Respondent made that determination because respondent determined that Ms. Whitehead did not receive any compensation during 1996. Respondent further determined that petitioners are liable for each of the years at issue for an excise tax of $120 under section 4973(a) for excess IRA contributions. Respondent also determined that petitioners are liable for each of the years at issue for the accuracy-related penalty under section 6662(a). OPINION Petitioners bear the burden of proving that the determina- tions in the notice are erroneous.19 See Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). With respect to the deduc- 19With respect to court proceedings arising in connection with examinations commencing after July 22, 1998, under sec. 7491(a) the burden of proof shifts to respondent in specified circumstances. Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3001(c), 112 Stat. 727. The record in this case does not establish the date on which the examination of petitioners’ taxable years at issue began, and neither party contends that sec. 7491(a) applies here. With respect to court proceedings arising in connection with examinations commencing after July 22, 1998, under sec. 7491(c) respondent bears the burden of production with respect to any individual’s liability for any penalty or addition to tax. Id. As noted above, the record in this case does not establish the date on which the examination of petitioners’ taxable years at issue began. Moreover, neither party contends that sec. 7491(c) applies here.Page: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Next
Last modified: May 25, 2011