Rafael M. and Rosario Gutierrez - Page 10

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          undermines petitioners’ contentions that their income would be              
          doubly taxed if they were to pay taxes on the proceeds from that            
          sale in the United States.                                                  
               Petitioners failed to corroborate their testimony by any               
          documentary evidence.  They attempted to introduce several                  
          documents in Spanish, which allegedly would have confirmed the              
          existence of a contract between petitioner and his brother for              
          the sale of the market, as well as petitioners’ written                     
          communications with the Mexican Government in connection with               
          that sale and other tax-related matters.  Because petitioners               
          failed to properly translate and authenticate the documents in              
          question, despite the Court’s order to do so, they were barred              
          from using them at trial.                                                   
               Aside from petitioners’ failure to substantiate their                  
          contentions with respect to the foreign source of the unreported            
          income, their reliance on the Treaty to avoid the U.S. tax is               
          misguided.  By filing a joint Federal income tax return for 1998,           
          petitioners in effect admitted that neither of them was a                   
          nonresident alien during the year in question.  See sec.                    
          6013(a)(1).  To the extent petitioners contend that they were not           
          U.S. residents during 1998, they presented no evidence to that              
          effect.  Consequently, by virtue of the Treaty, petitioners are             
          entitled to no exemption from U.S. tax, but only to a foreign tax           
          credit for income taxes paid to the Mexican Government.                     






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