- 3 - Some of the facts have been stipulated and are so found. The stipulations of fact and those attached exhibits which were admitted into evidence are incorporated herein by this reference. Petitioners resided in Raleigh, North Carolina, on the date the petition was filed in this case. Generally, a taxpayer bears the burden of proving the Commissioner’s determinations in a statutory notice of deficiency to be in error. Rule 142(a). Although section 7491(a) shifts the burden of proof to the Commissioner with respect to certain factual issues, the burden remains on the taxpayer with respect to an issue where the taxpayer (1) fails to introduce credible evidence with respect thereto, or (2) fails to comply with statutory recordkeeping and substantiation requirements. A taxpayer must keep records sufficient to establish the amounts of the items reported on his Federal income tax return. Sec. 6001; sec. 1.6001-1(a), (e), Income Tax Regs. In the event that a taxpayer establishes that a deductible expense has been paid but is unable to substantiate the precise amount, we generally may estimate the amount of the deductible expense bearing heavily against the taxpayer whose inexactitude in 1(...continued) assessment of taxes and interest which apparently had been made by respondent under the authority of sec. 6213(b)(1). The amount of this assessment (exclusive of the interest portion) is properly reflected in the notice of deficiency in such a manner as to reduce the amount of the 1997 deficiency.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011