- 5 - 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.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011