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Dividend History
Petitioner has never paid a dividend.
OPINION
I. Burden of Proof
A. Rule 142(a)
In pertinent part, Rule 142(a)(1) provides the general rule
that “[t]he burden of proof shall be upon the petitioner”. Rule
142(a)(2) references the applicability of section 7491, which
shifts the burden of proof to the Secretary under certain
specified circumstances.
B. Section 7491
Section 7491, enacted as part of the Internal Revenue
Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L.
105-206, sec. 3001, 112 Stat. 727, is applicable to “court
proceedings arising in connection with examinations commencing
after the date of the enactment of this Act.” RRA 1998 sec.
3001(c). RRA 1998 was enacted on July 22, 1998, well before
respondent’s issuance of the notice on February 2, 2001. The
record fails to indicate, however, the commencement date of
respondent’s examination of petitioner. Moreover, petitioner has
neither argued that section 7491 is applicable to shift the
burden of proof to respondent nor established compliance with the
requirements of section 7491(a)(2)(C) (the net worth limitation).
Petitioner has the burden to prove that it satisfies the
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