Rafael M. and Rosario Gutierrez - Page 5

                                        - 5 -                                         
          factual issues.5  Prince v. Commissioner, T.C. Memo. 2003-247.              
          The legislative history of section 7491(a) clarifies that                   
          taxpayers must prove that they have complied with the record-               
          keeping, substantiation, and cooperation requirements before that           
          section places the burden of proof upon the Commissioner.6  H.              
          Conf. Rept. 105-599, at 239 (1998), 1998-3 C.B. 747, 993 (“The              
          taxpayer has the burden of proving that it meets each of these              

               5 The relevant language of sec. 7491 provides:                         
               SEC. 7491. BURDEN OF PROOF.                                            
                    (a) Burden Shifts Where Taxpayer Produces Credible                
               Evidence.--                                                            
                         (1) General rule.--If, in any court                          
                    proceeding, a taxpayer introduces credible                        
                    evidence with respect to any factual issue                        
                    relevant to ascertaining the liability of the                     
                    taxpayer for any tax imposed by subtitle A or                     
                    B, the Secretary shall have the burden of                         
                    proof with respect to such issue.                                 
                         (2) Limitations.--Paragraph (1) shall                        
                    apply with respect to an issue only if--                          
                              (A) the taxpayer has complied                           
                         with the requirements under this                             
                         title to substantiate any item;                              
                              (B) the taxpayer has                                    
                         maintained all records required                              
                         under this title and has cooperated                          
                         with reasonable requests by the                              
                         Secretary for witnesses,                                     
                         information, documents, meetings,                            
                         and interviews; * * *                                        
               6 The text of the statute requires that the taxpayer satisfy           
          the remaining (credible evidence) requirement as a condition of             
          placing the burden of proof upon respondent.                                





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

Last modified: May 25, 2011