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are “per audit”. We conclude that the examination commenced
before July 22, 1998. Therefore, section 7491 does not apply
here.
2. Whether Respondent’s Determination Is Presumed To Be
Correct
Petitioner contends that respondent’s determination should
not be presumed to be correct and that, as a result, respondent
bears the burden of proof. We disagree. He points out that in
Palmer v. IRS, 116 F.3d 1309, 1312 (9th Cir. 1997), the U.S.
Court of Appeals for the Ninth Circuit said that “In an action to
collect taxes, the government bears the initial burden of proof.”
However, petitioner uses that quotation out of context. In
Palmer, the Commissioner sought to enforce a tax lien in a suit
in Federal District Court under sections 7401 through 7403. The
Court in Palmer said that the Government’s initial burden is
satisfied if the Commissioner’s determination is presumed to be
correct, and that the determination is presumed to be correct if
it is supported by a minimal factual foundation. Id. Here,
respondent’s determination is more than adequately supported by
computer and other records seized from petitioner’s office and
information from third parties. Thus, petitioner bears the
burden of proving that the Commissioner’s determination is
incorrect. Id.
Petitioner contends that respondent’s agents fabricated the
records that respondent used to reconstruct petitioner’s income.
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