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trial. Accordingly, we regard this case as submitted by the
parties. See Rule 149(a).6
A. Unreported Interest Income
The evidence shows that petitioner received interest income
in amounts at least as great as determined in the notices of
deficiency. In fact, by his own admissions in his petition,
petitioner received more interest income than was determined in
the notices of deficiency. Respondent has not sought increased
deficiencies based on these admissions. Therefore, we sustain
respondent’s deficiency determinations.7
6 RULE 149. FAILURE TO APPEAR OR TO ADDUCE EVIDENCE
(a) Attendance at Trials: The unexcused absence
of a party or a party’s counsel when a case is called
for trial will not be ground for delay. The case may
be dismissed for failure properly to prosecute, or the
trial may proceed and the case be regarded as submitted
on the part of the absent party or parties.
The parties have not addressed the application of sec. 7491
or whether the examination of petitioner’s 1996 or 1997 tax year
commenced after July 22, 1998, the effective date of sec. 7491.
See RRA 1998 sec. 3001(c), 112 Stat. 727. (Because petitioner’s
1998 return was due after July 22, 1998, presumably, the
examination of petitioner’s 1998 tax year commenced after July
22, 1998.) Nevertheless, sec. 7491 does not affect our analysis
for any of the years at issue because, with the one exception
discussed infra note 7, our holdings do not depend upon which
party has the burden of proof or production.
7 In his petition, petitioner claims entitlement to all the
deductions listed on his purported returns. Petitioner has not
substantiated any of these deductions and accordingly is not
entitled to them. See Rule 142(a); New Colonial Ice Co. v.
Helvering, 292 U.S. 435, 440 (1934). Because petitioner failed
to comply with the substantiation and record-keeping requirements
(continued...)
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