Rafael M. and Rosario Gutierrez - Page 4

                                        - 4 -                                         
          Mexico (Treaty)4 from being taxed by the United States on their             
          receipt of the $137,221.  Petitioners testified that the $137,221           
          was reported incrementally to the Immigration and Naturalization            
          Service upon each entry by petitioner into the United States, but           
          they failed to present any admissible evidence in this proceeding           
          to corroborate that testimony.  They sought to introduce into               
          evidence various documents in Spanish, which they claimed would             
          have verified the alleged sale and the subsequent reporting of              
          same to the Mexican authorities.  However, petitioners were                 
          barred from using these documents at trial because they did not             
          translate and properly authenticate them.                                   
                                       OPINION                                        
          I.  Burden of Proof as to Deficiency                                        
               Taxpayers generally must prove respondent’s determinations             
          wrong in order to prevail.  Rule 142(a)(1); Welch v. Helvering,             
          290 U.S. 111, 115 (1933).  As one exception to this rule, section           
          7491(a) places upon respondent the burden of proof with respect             
          to any factual issue related to a taxpayers’ tax liability if               
          they maintained adequate records, satisfied applicable                      
          substantiation requirements, cooperated with respondent, and                
          introduced during the court proceeding credible evidence on the             

               4 Petitioners refer to the Convention & Protocol for the               
          Avoidance of Double Taxation and the Prevention of Fiscal Evasion           
          with Respect to Taxes on Income, Sept. 18, 1992, U.S. - Mex., S.            
          Treaty Doc. No. 103-07, reprinted in 2 Tax Treaties (CCH) at                
          5903.                                                                       





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011