- 11 - the Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3001, 112 Stat. 726, and is applicable in the case of court proceedings arising only in connection with examinations commencing after July 22, 1998, RRA 1998 sec. 3001(c), 112 Stat. 727. In the instant case, respondent selected petitioners’ 1996 return for audit and mailed to petitioners notice of that audit on July 16 or 17, 1998, before the effective date of section 7491. Absent any contrary evidence, we treat that date as the date the examination of petitioners’ 1996 taxable year commenced. See Jombo v. Commissioner, T.C. Memo. 2002-273; see also H. Conf. Rept. 105- 599, at 242 (1998), 1998-3 C.B. 747, 996. There is nothing in the record which establishes that the “examination” of petitioners’ 1997 taxable year commenced after July 22, 1998. Petitioners did not present any argument on brief regarding when an “examination” commenced with respect to that year. We hold that section 7491 is not applicable with respect to petitioners’ 1997 tax liability. See Castro v. Commissioner, T.C. Memo. 2001- 115; Nitschke v. Commissioner, T.C. Memo. 2000-230. Even if the examination of petitioners’ 1996 and 1997 taxable years started after the effective date of section 7491, the burden of proof would not have shifted to respondent. Section 7491(a)(1) applies with respect to an issue only if “the taxpayer has complied with the requirements under this title toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011