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As noted earlier, petitioner presented no books and records
to substantiate his claim that expenses and losses from prior
years totally offset the income he realized from his trade or
business activity during 2000. Although petitioner's records
for the year 2000 were lost, petitioner made no attempt to
reconstruct his records or to offer any other evidence that
would satisfy the Court that the income at issue was offset by
trade or business expenses or losses. Of concern to the Court
is petitioner's admission at trial that he received other income
payments during 2000 in his trade or business activity that were
not reported by the payers to the Internal Revenue Service, and
which petitioner did not include as income on his income tax
return.
Section 6001 requires generally that every person liable
for any tax keep such records, render such statements, make such
returns, and comply with such regulations as the Secretary may
from time to time prescribe. Section 1.6001-1(a), Income Tax
Regs., provides, in pertinent part, that "any person subject to
tax under subtitle A of the Code * * *, shall keep such
2(...continued)
Commissioner is conditioned upon the taxpayer's introduction of
credible evidence with respect to any factual issue relevant to
ascertaining the liability of the taxpayer and the taxpayer's
cooperation with reasonable requests for witnesses, information,
documents, meetings, and interviews. Sec. 7491(a)(2). The facts
of this case do not demonstrate to the Court that the burden of
proof shifted to respondent.
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Last modified: May 25, 2011