- 6 -
Insurance -0- (594) -0-
Self-employment (5,549) (6,337) (7,166)
Deductions and exemptions:
Standard deduction 1,900 2,000 2,050
Exemptions 5,300 7,938 7,040
122,853 271,975 205,036
At trial, respondent conceded as to 1997 that he incorrectly
disallowed $49,529 of the purchases, $2,308 of the sales tax
expense, and $4,449 of the advertising expense. Respondent also
conceded that petitioner’s 1997 gross income did not include
$11,077 of the determined unreported gross receipts and that
petitioner’s 1999 gross income did not include any of the
determined unreported gross receipts.
OPINION
1. Burden of Proof
Taxpayers generally must prove respondent’s determinations
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 respondent the burden of proof with respect
to any factual issue 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.3 The legislative history of
3 The relevant language of sec. 7491 provides:
(continued...)
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Last modified: May 25, 2011