- 11 -
provide any tax benefit to petitioner as a result of the
applicability of section 67(a). Respondent is sustained in the
disallowance of all the other deductions, since petitioner
presented no substantiating evidence to support the expenses
deducted.2
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
under Rule 155.
2 Sec. 7491, under certain circumstances, places the
burden of production on the Secretary with respect to a
taxpayer's liability for taxes, penalties, and additions to tax
in court proceedings arising in connection with examinations
commencing after July 22, 1998. The record is unclear as to
whether the examination of petitioner's returns commenced before
or after July 22, 1998. Nevertheless, the burden of proof did
not shift to respondent because petitioner did not provide
substantiation and credible evidence in connection therewith.
Higbee v. Commissioner, 116 T.C. 438 (2001).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12
Last modified: May 25, 2011