- 4 -
Discussion
The examination of petitioner’s 1998 Federal income tax
return began after July 22, 1998. That being so, petitioner
argues that respondent bears the burden of proof in this case.
See sec. 7491. Respondent disagrees and argues that petitioner
bears the burden of proof because petitioner failed to introduce
credible evidence with respect to any factual issue relevant to
ascertaining his 1998 Federal income tax liability and further
failed to comply with the substantiation and record-keeping
requirements of the Internal Revenue Code. See sec.
7491(a)(2)(A) and (B). As we view the matter, the outcome of
this case would be the same regardless of where the burden of
proof lies. Further discussion on the point is, therefore,
unnecessary.
Theft Loss Deduction
Subject to certain limitations, an individual is entitled to
a deduction for a theft loss sustained during the taxable year
and not compensated for by insurance or otherwise. See sec.
165(a), (c), (h). Generally, if otherwise deductible, a theft
loss is deductible for the year in which the taxpayer discovers
such loss. See sec. 165(e); Marine v. Commissioner, 92 T.C. 958,
976 (1989), affd. without published opinion 921 F.2d 280 (9th
Cir. 1991). A theft loss deduction must be supported by evidence
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011