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Section 7491(a)(1) sufficient to shift the burden of
proof to Respondent.
Section 7491(a)(1) provides that if, in any court proceeding, the
taxpayer introduces credible evidence with respect to a factual
issue relevant to ascertaining the taxpayer's liability for a tax
(under subtitle A or B), the burden of proof with respect to such
a factual issue will be placed on the Commissioner.
For the burden to shift to the Commissioner, however, the
taxpayer must comply with the substantiation and record-keeping
requirements of the Internal Revenue Code. See sec.
7491(a)(2)(A) and (B). In addition, section 7491(a) requires
that taxpayers cooperate with reasonable requests by the
Commissioner for “witnesses, information, documents, meetings,
and interviews”. Sec. 7491(a)(2)(B). Finally, the benefits of
section 7491(a) are not available in cases of partnerships,
corporations, and trusts unless the taxpayer meets the net worth
requirements of section 7430(c)(4)(A)(ii). See sec.
7491(a)(2)(C). Taxpayers bear the burden of proving that these
requirements are met. Higbee v. Commissioner, 116 T.C. 438
(2001); H. Conf. Rept. 105-599, at 240 (1998), 1998-3 C.B. 747,
994; S. Rept. 105-174, at 45 (1998), 1998-3 C.B. 537, 581.
Respondent argues that the estate failed to introduce
evidence during the trial to show that the requirements of
section 7491(a) were satisfied. Respondent also argues that the
estate should not be allowed to initiate a burden of proof
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