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rule, section 7491(a) places upon the Commissioner the burden of
proof with respect to any factual issue if the taxpayer
maintained adequate records, satisfied applicable substantiation
requirements, cooperated with the Commissioner, and introduced
during the court proceeding credible evidence on the factual
issue. The legislative history of section 7491(a) clarifies that
taxpayers must prove that they have satisfied the adequate
records, substantiation, and cooperation requirements before that
section places the burden of proof upon the Commissioner. H.
Conf. Rept. 105-599, at 240 (1998), 1998-3 C.B. 747, 994 (“The
taxpayer has the burden of proving that it meets each of these
conditions, because they are necessary prerequisites to
establishing that the burden of proof is on the Secretary.”); see
also Prince v. Commissioner, T.C. Memo. 2003-247. The text of
the statute requires that the taxpayer satisfy the remaining
(credible evidence) requirement as a condition of placing the
burden of proof upon the Commissioner.
We do not find that petitioner maintained adequate records,
satisfied applicable substantiation requirements, or cooperated
with respondent. Accordingly, we hold that section 7491(a) does
not apply here to place the burden of proof upon respondent.
2. Filing Status
Section 1(a) allows married individuals to elect to compute
their Federal income tax liability on the basis of a joint
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Last modified: May 25, 2011