Ronald L. DeVault - Page 9

                                        - 8 -                                         
               After filing the petition, petitioner signed a declaration             
          on May 14, 2003, which states:                                              
               I, Ronald Leon DeVault, left Union Machine in September                
               of 1999.  From September, 1999 until the present, I                    
               have not had any transaction, communication, business,                 
               or monetary action with Union Machine, Inc. or with                    
               Phillip Turner, president and owner of Union Machine,                  
               As of September, 1999, I did forfeit all rights,                       
               privileges, and my 49% share in Union Machine, Inc. to                 
               Phillip Turner.                                                        
          Petitioner provided this declaration to respondent’s agent as               
          well as to Union Machine’s accountants.  Before doing so,                   
          however, petitioner invited Mr. Turner to also sign the                     
          declaration, but Mr. Turner declined to do so on the ground that            
          it was not truthful because petitioner never signed a release of            
          his interest in Union Machine.                                              
               Generally, the Commissioner’s determinations are presumed              
          correct, and the taxpayer bears the burden of proving that those            
          determinations are erroneous.  Rule 142(a); Welch v. Helvering,             
          290 U.S. 111, 115 (1933).11                                                 

               11  Sec. 7491(a) does not apply in this case to shift the              
          burden of proof to respondent because petitioner neither alleged            
          that sec. 7491(a) is applicable nor introduced credible evidence            
          with respect to any factual issue relevant to ascertaining his              
          income tax liability.  See Higbee v. Commissioner, 116 T.C. 438,            
          442 (2001).                                                                 

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011