Jorge N. and Vivian Lopez - Page 8

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          Schedule A, Itemized Deductions.  Other adjustments made in the             
          notice of deficiency are not in dispute.                                    
          Discussion                                                                  
               Burden of Proof                                                        
               As a general rule, determinations made by the Commissioner             
          in the notice of deficiency are presumed to be correct, and the             
          taxpayer bears the burden of proving otherwise.  See Rule 142(a);           
          Welch v. Helvering, 290 U.S. 111, 115 (1933).  Moreover, it is              
          settled that “‘an income tax deduction is a matter of legislative           
          grace and that the burden of clearly showing the right to the               
          claimed deduction is on the taxpayer.’”  INDOPCO, Inc. v.                   
          Commissioner, 503 U.S. 79, 84 (1992) (quoting Interstate Transit            
          Lines v. Commissioner, 319 U.S. 590, 593 (1943)).  Pursuant to              
          section 7491(a), if the taxpayer introduces credible evidence               
          with respect to any factual issue relevant to ascertaining the              
          taxpayer’s liability for tax, the burden of proof is placed on              
          the Commissioner with respect to that issue.  For the burden of             
          proof to shift to the Commissioner, however, the taxpayer must              
          cooperate with reasonable requests by the Commissioner for                  
          witnesses, information, documents, meetings, and interviews.                
          See sec. 7491(a)(2)(B); Higbee v. Commissioner, 116 T.C. 438,               
          441 (2001).  Petitioners failed to satisfy this requirement                 
          insofar as they refused to meet with respondent’s counsel before            
          trial, refused to provide respondent’s counsel with copies of               






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