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States savings bonds issued at a discount has an election as to
when he will report the interest” pursuant to section 454 and the
regulations thereunder.2 Id.
Generally, the burden of proof is on the taxpayer. Rule
142(a)(1). The burden of proof respecting a factual issue may be
placed on the Commissioner under section 7491(a) if the taxpayer
introduces credible evidence regarding that issue and establishes
that the taxpayer complied with the requirements of section
7491(a)(2)(A) and (B) to substantiate items, maintain required
records, and fully cooperate with the Commissioner’s reasonable
requests. Section 7491 is applicable in the present case.3
Nevertheless, petitioner has neither taken a position as to
whether the burden of proof should be placed on respondent nor
established that she complied with the requirements of section
7491(a). We conclude that the burden remains on petitioner to
prove that she did not have unreported interest income of $10,255
during the 2000 taxable year.
The record is clear that petitioner redeemed U.S. savings
bonds in 2000 and did not report interest income from the bond
redemption in that year. Petitioner simply contends, without any
2 Sec. 454(c) deals with series E U.S. savings bonds held at
the date of maturity.
3 Sec. 7491 is effective with respect to court proceedings
arising in connection with examinations by the Commissioner
commencing after July 22, 1998, the date of enactment of the
Internal Revenue Service Restructuring and Reform Act of 1998,
Pub. L. 105-206, sec. 3001(a), 112 Stat. 726.
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Last modified: May 25, 2011