- 7 -
Respondent on June 26, 2002, issued to petitioner the
statutory notice of deficiency underlying the present litigation.
Therein, respondent determined, inter alia, that moneys received
under preneed contracts are to be characterized as income to
petitioner in the year of receipt.
OPINION
I. Preliminary Matters
A. Burden of Proof
In general, the Commissioner’s determinations are presumed
correct, and the taxpayer bears the burden of proving otherwise.
Rule 142(a). Section 7491, effective for court proceedings that
arise in connection with examinations commencing after July 22,
1998, may operate, however, in specified circumstances to place
the burden on the Commissioner. Internal Revenue Restructuring &
Reform Act of 1998, Pub. L. 105-206, sec. 3001(c), 112 Stat. 727.
With respect to factual issues and subject to enumerated
limitations, section 7491(a) may shift the burden of proof to the
Commissioner in instances where the taxpayer has introduced
credible evidence. Concerning penalties and additions to tax,
section 7491(c) places the burden of production on the
Commissioner.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011