- 3 - amounts of which respondent conceded at trial), other unexplained bank deposits, flowthrough losses from the disregarded Sweetbush Trust, and increased Social Security benefits. Respondent further determined that petitioners were subject to self- employment tax, with a deduction for one-half of the self- employment tax. Lastly, respondent determined that petitioners were liable for the accuracy-related penalty under section 6662(a). Petitioners have the burden of proving that respondent’s determination is incorrect. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Section 7491 does not apply in this case because petitioners did not cooperate with respondent during the audit. At trial, petitioners did not introduce any credible evidence. Based on this record, we find that petitioners have failed to meet their burden of proof. At trial, respondent did not carry his burden of production with respect to the section 6662(a) penalty. Sec. 7491(c). Therefore, we do not sustain respondent’s determination that petitioners were liable for a penalty under section 6662(a). All of the arguments and contentions that have not been analyzed herein have been considered, but do not require any further discussion. Reviewed and adopted as the report of the Small Tax CasePage: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011