- 12 - 11/30/95 11/30/96 11/30/97 Food & lodging1 $12,433 $19,919 $19,573 Medical 3,516 5,751 5,456 Total dividends 15,949 25,670 25,029 1The record does not explain why the amounts of dividends for food and lodging expenses included in the Weeldreyers’ income exceed the amounts disallowed as deductions to Dreyer Farms. OPINION Issue 1. Expenses Incurred by Dreyer Farms To Provide Medical Benefits, Food, and Housing to the Weeldreyers in 1995, 1996, and 1997 A. Positions of the Parties10 Respondent disallowed deductions taken by Dreyer Farms for medical costs (health insurance premiums and other medical care expenses), food, lodging (including property insurance, property taxes, remodeling, landscaping, maintenance and repair, telephone, and utilities for the farmhouse), and depreciation of the farmhouse. Respondent asserts that the medical costs, food, 10Under certain circumstances, sec. 7491 places the burden of proof or production on the Commissioner. Sec. 7491 applies to court proceedings arising in connection with tax examinations beginning after July 22, 1998. Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3001(a), 112 Stat. 726. Petitioners timely filed their returns for the years at issue. Hence, all of the returns were filed on or before Apr. 15, 1998. The record does not disclose when the examination of petitioners’ tax returns began, and it is possible that the examination began before July 23, 1998. Petitioners do not contend that sec. 7491 applies in these cases, and they have not otherwise asserted that respondent has the burden of proof or production with respect to any issue presented in these cases. We therefore conclude that sec. 7491 does not apply, and petitioners have the burden of proof and production.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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