- 5 - OPINION 1. Burden of Proof Taxpayers generally must prove the Commissioner’s determinations wrong in order to prevail. Rule 142(a)(1);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 if the taxpayer maintained adequate records, satisfied applicable substantiation requirements, cooperated with the Commissioner, and introduced during the court proceeding credible evidence on the factual issue. The legislative history of section 7491(a) clarifies that taxpayers must prove that they have satisfied the adequate records, substantiation, and cooperation requirements before that section places the burden of proof upon the Commissioner. H. Conf. Rept. 105-599, at 239 (1998), 1998-3 C.B. 747, 994 (“The taxpayer has the burden of proving that it meets each of these conditions, because they are necessary prerequisites to establishing that the burden of proof is on the Secretary.”); see also Prince v. Commissioner, T.C. Memo. 2003-247. We do not find that petitioner maintained adequate records, satisfied applicable substantiation requirements, or cooperated 1 Rule references are to the Tax Court Rules of Practice and Procedure. Section references are to the applicable versions of the Internal Revenue Code.Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011