Marcel Toto Ngosso - Page 9

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          Commissioner’s use of the bank deposits method is not arbitrary             
          or capricious.  Id.  Bank deposits are prima facie evidence of              
          income.  Id.  In calculating a taxpayer’s taxable income, the               
          Commissioner must take into account any nontaxable source or                
          deductible expense of which he has knowledge.  Id. at 645-646.              
               Generally the taxpayer bears the burden of proof.  Rule                
          142(a)(1).  The burden of proving facts relevant to the                     
          deficiency may shift to the Commissioner under section 7491 if              
          the taxpayer establishes compliance with the requirements of                
          section 7491(a)(2)(A) and (B) by substantiating items,                      
          maintaining required records, and fully cooperating with the                
          Secretary’s reasonable requests.  Section 7491 also places the              
          burden of production upon the Secretary with respect to additions           
          to tax.  Sec. 7491(c).  Section 7491 is effective with respect to           
          court proceedings arising in connection with examinations by the            
          Commissioner commencing after July 22, 1998, the date of its                
          enactment by section 3001(a) of the Internal Revenue Service                
          Restructuring and Reform Act of 1998, Pub. L. 105-206, 112 Stat.            
               It is not clear from the record when respondent commenced              
          the examination of petitioner’s return; however, petitioner has             
          not alleged that section 7491 is applicable to this case.  Even             
          if section 7491 were to apply, petitioner has not established               
          that he complied with the requirements of section 7491(a)(2)(A)             

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