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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.
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