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deficiency determinations for the years at issue does not shift
to respondent. On the instant record, we agree with respondent.
We conclude that petitioner has the burden of proving that
respondent’s deficiency determinations are wrong. Rule 142(a);
Welch v. Helvering, 290 U.S. 111, 115 (1933). Respondent,
however, has the burden of proof with respect to the increase in
the addition to tax under section 6651(a)(1) for each of the
years 1996 and 1997 that respondent alleged in respondent’s
amendment to answer. Rule 142(a)(1).
At trial, the only issue about which petitioner testified
related to whether during each of the years at issue petitioner’s
sole proprietorship or Native Skies, Inc., operated a business
engaged in selling jewelry and certain other items.9 Petitioner
testified that Native Skies, Inc., and not petitioner’s sole
proprietorship, operated that business. Petitioner’s testimony
is contrary to the matters deemed established in the instant
case. We are unwilling to rely on that testimony. The matters
deemed established show that during each of the years at issue
petitioner’s sole proprietorship, and not Native Skies, Inc.,
operated a business engaged in selling jewelry and certain other
items, such as rugs. On the record before us, we find that
petitioner has failed to carry his burden of showing that during
each of the years at issue petitioner’s sole proprietorship did
9Although the Court provided petitioner an opportunity to
file a brief in this case, petitioner declined to do so.
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