- 18 - deficiency included schedules that listed for each of the years at issue the Commissioner’s position regarding the sources of the deposits into the taxpayer’s accounts during each year and the total amount of the deposits during each year from each source). But we do not find respondent’s failure to do so in this case constitutes the raising of new matter. The purpose of section 7522 is to give the taxpayer notice of the Commissioner’s basis for determining a deficiency. Shea v. Commissioner, supra at 196. In the situation before us, Mr. Mostoller represented petitioners during the examination of their returns, as well as the examination of the Bitker partnership returns, and he had a copy of the examination report related to the partnership returns. The notices of deficiency, in conjunction with the partnership examination report to which petitioners had access through Mr. Mostoller, gave petitioners sufficient notice of respondent’s basis for determining the deficiencies. Under these circumstances, we are satisfied that the notices of deficiency sufficiently described the basis of the deficiencies within the meaning of section 7522. B. Section 7491 1. Penalties Under section 7491(c), the Commissioner has the burden of production with respect to an individual’s liability for any penalty. Respondent acknowledges having the burden of productionPage: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
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