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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,
Inc.
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.
Discussion
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).
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Last modified: May 25, 2011