Maintenance, Painting & Construction, Inc. - Page 7

                                        - 7 -                                         
                                       OPINION                                        
          1.  Burden of Proof                                                         
               Taxpayers generally must prove respondent’s determination of           
          an income tax deficiency wrong in order to prevail.  Rule                   
          142(a)(1); Welch v. Helvering, 290 U.S. 111, 115 (1933).  As one            
          exception to this rule, section 7491(a) places upon the                     
          Commissioner the burden of proof with respect to any factual                
          issue relevant to a taxpayer’s liability for tax if the taxpayer            
          maintained adequate records, satisfied applicable substantiation            
          requirements, cooperated with respondent, and introduced during             
          the court proceeding credible evidence on the factual issue.  A             
          taxpayer such as petitioner must prove that it has satisfied the            
          recordkeeping, substantiation, and cooperation requirements                 
          before section 7491(a) places the burden of proof upon the                  
          Commissioner.  Prince v. Commissioner, T.C. Memo. 2003-247.                 
               We do not find that petitioner maintained adequate records,            
          satisfied applicable substantiation requirements, or cooperated             
          with respondent.  Accordingly, we hold that section 7491(a) does            
          not apply here to place the burden of proof upon respondent.                
          2.  Abandonment Loss                                                        
               Section 165(a) provides a deduction for any loss sustained             
          during the taxable year which is not compensated for by insurance           
          or otherwise.  A loss from the abandonment of an asset is within            
          this section if:  (1) The owner of the asset intended to abandon            






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011