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under the Internal Revenue Code, sec. 7491(a)(2)(A); (b)
maintained all records required by the Internal Revenue Code,
sec. 7491(a)(2)(B); and (c) cooperated with reasonable requests
by the Secretary for information, documents, and meetings, id. A
taxpayer bears the burden of proving that he or she has met the
requirements of section 7491(a). See H. Conf. Rept. 105-599, at
239 (1998), 1998-3 C.B. 747, 993; S. Rept. 105-174, at 45 (1998),
1998-3 C.B. 537, 581.
The record does not show when the examination began. Even
if the examination had begun after July 22, 1998, the burden of
proof regarding petitioner’s basis in the equipment would not
shift to respondent. Petitioner did not show that he kept
records of his bases in equipment or that he cooperated with
respondent’s reasonable requests for information and documents.
See sec. 7491(a)(2)(B). Thus, respondent’s determination is
presumed to be correct, and petitioner bears the burden of proof.
See Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
2. Petitioner’s Bases in Equipment Sold in 1987-90
Petitioner contends that the record shows that he had higher
bases in equipment sold in 1987-90 than conceded by respondent.4
4 Respondent conceded that petitioner established his
original costs for three pieces of equipment: The Terex TS14B,
the Caterpillar 953LGP, and the Case 1835.
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Last modified: May 25, 2011