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for the accuracy-related penalty under section 6662 because he
disclosed his lottery winnings on his 1996 return.
B. Burden of Proof
Petitioner contends that respondent bears the burden of
proving that the NYSL winnings petitioner received in 1996 are
taxable income. We disagree.
Under section 7491, the burden of proof is placed on the
Secretary under certain circumstances. Section 7491 applies to
court proceedings arising in connection with examinations
beginning after July 22, 1998. Internal Revenue Service
Restructuring and Reform Act of 1998, Pub. L. 105-206, sec.
3001(a), 112 Stat. 726. Respondent sent a letter to petitioner
dated May 7, 1998, informing him that his 1996 Federal income tax
return had been selected for examination. Absent any contrary
evidence, we treat that date as the date respondent’s examination
of petitioner’s 1996 tax year began. Thus, section 7491(a) does
not apply, and respondent’s determination is presumed to be
correct and petitioner bears the burden of proof on all issues in
this case. Rule 142(a)(1); Welch v. Helvering, 290 U.S. 111, 115
(1933).
C. Whether Petitioner Constructively Received All of His
Lottery Winnings in 1989
Petitioner contends that the NYSL amounts that he received
in 1996 are not taxable in 1996 because he constructively
received all of his lottery winnings in 1989. Petitioner points
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