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Taxpayers bear the burden of proving that section 7491
applies. H. Conf. Rept. 105-599, at 239 (1998), 1998-3 C.B. 747,
993; S. Rept. 105-174, at 45 (1998), 1998-3 C.B. 537, 581.
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. On September 11, 1996,
respondent requested transcripts of reports from third parties
showing amounts paid to petitioner. Absent contrary evidence, we
infer from this fact that the examination in this case began
before July 22, 1998. Thus, section 7491 does not apply, the
notice of deficiency is presumed to be correct, and petitioner
bears the burden of proving that respondent’s determination is
incorrect. Sec. 7491(a); Rule 142(a)(1); Welch v. Helvering, 290
U.S. 111, 115 (1933).2
1(...continued)
item;
(B) the taxpayer has maintained all records
required under this title and has cooperated with
reasonable requests by the Secretary for
witnesses, information, documents, meetings, and
interviews; * * *.
2 However, at par. B-3, below, we conclude that respondent
bears the burden of producing evidence that petitioner received
wage income in 1993.
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