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assignments of error. Jarvis v. Commissioner, 78 T.C. 646, 658
(1982). Any issue not raised in the pleadings is deemed to be
conceded. Rule 34(b)(4); Jarvis v. Commissioner, supra at 658
n.19; Gordon v. Commissioner, 73 T.C. 736, 739 (1980). Further,
the failure of a party to plead or otherwise proceed as provided
in the Court’s Rules may be grounds for the Court to hold such
party in default, either on the motion of another party or on the
initiative of the Court. Rule 123(a); Ward v. Commissioner, T.C.
Memo. 2002-147.
Generally speaking, because the taxpayer bears the burden of
proof, the Commissioner’s determinations in a notice of
deficiency are presumed to be correct. See Rule 142(a); INDOPCO,
Inc. v. Commissioner, 503 U.S. 79, 84 (1992); Welch v. Helvering,
290 U.S. 111, 115 (1933); cf. sec. 7491(a).
On the other hand, section 7491(c) provides that the
Commissioner shall have the burden of production in any court
proceeding with respect to the liability of any individual for
any penalty, addition to tax, or additional amount.
Specifically, section 7491(c), which was enacted by the Internal
Revenue Service Restructuring and Reform Act of 1998 (RRA 1998),
Pub. L. 105-206, sec. 3001(a), 112 Stat. 726, provides as
follows:
SEC. 7491(c) Penalties.-–Notwithstanding any other
provision of this title, the Secretary shall have the
burden of production in any court proceeding with
respect to the liability of any individual for any
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