- 4 - claimed various expenses totaling $86,249.07.3 On June 29, 2001, respondent issued to petitioner the notice with respect to his taxable years 1997 and 1998. In that notice, respondent, inter alia, determined to disallow for each of the years at issue the Schedule C deductions that petitioner claimed in his 1997 Schedule C and in his 1998 Schedule C. Respondent further determined in the notice that petitioner is liable for each of the years at issue for the accuracy-related penalty under section 6662(a). OPINION The parties do not address section 7491. Petitioner filed his 1997 return on July 15, 1998, and his 1998 return on May 24, 1999. We presume that respondent’s examination of those returns began after July 22, 1998, and that section 7491(a) is applicable in the instant case. On the record before us, we find that petitioner’s burden of proof relating to the deficiency determi- nations does not shift to respondent under section 7491(a). That is because petitioner has not complied with the substantiation and recordkeeping requirements of section 7491(a)(2)(A) and (B). Accordingly, we find that petitioner has the burden of proving that respondent’s deficiency determinations are wrong. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). With 3Petitioner made a computational error when he added the total expenses claimed in petitioner’s 1998 amended Schedule C. The correct total of such expenses is $86,249.07.Page: Previous 1 2 3 4 5 6 Next
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