George H. Richards - Page 7




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          return, she claimed deductions for both mortgage interest and               
          real estate taxes.  Ms. Richards initially claimed dependency               
          exemption deductions on her 1997 return for Brigid and Shannon,             
          but she did not claim dependency exemption deductions on her                
          amended return.                                                             
               After trial, respondent filed (1) a motion to file an answer           
          to conform the pleadings to the proof, which the Court granted,             
          and (2) an answer to amended petition.                                      
          Discussion                                                                  
               As a preliminary matter, we note that petitioner conceded              
          the adjustment determined in the notice of deficiency.                      
          After the issuance of the notice of deficiency, in the amended              
          petition and at trial, petitioner raised the issues concerning              
          his Schedule C expenses and his increased alimony deduction;                
          accordingly, petitioner bears the burden of proof on those                  
          issues.2  Rule 142(a)(1).                                                   
               In his answer to amended petition, respondent denied the               
          allegations in the amended petition and made affirmative                    
          allegations that petitioner was not entitled to dependency                  




               2  Sec. 7491 does not apply to shift the burden of proof to            
          respondent on these issues because petitioner has neither alleged           
          that sec. 7491 is applicable nor established that he complied               
          with the requirements of sec. 7491(a)(2)(A) and (B) to                      
          substantiate items, maintain required records, and fully                    
          cooperate with respondent’s reasonable requests.                            





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