- 11 - burden of proof on respondent, we conclude that respondent has offered insufficient contrary evidence to overcome petitioners’ evidence.7 Accordingly, respondent has failed to sustain his burden of proof. Decision will be entered for petitioners. 7 In our original opinion, we noted: “Even if the burden of proof were placed on respondent, we would decide the issue [as to the deductibility of the tax payments] in his favor based on the preponderance of the evidence.” T.C. Memo. 2002-6 n.4. This statement reflected this Court’s conclusion that Mr. Griffin’s testimony was not only insufficient to support petitioners’ claim to ordinary and necessary business deductions but indeed undermined their claim, insofar as Mr. Griffin’s testimony convinced us that his relevant business activities were conducted entirely through S corporations. In light of the Court of Appeals’ conclusion that Mr. Griffin’s testimony was sufficient to support the claimed deductions, the preponderance of the evidence, thus evaluated, is no longer in respondent’s favor.Page: Previous 1 2 3 4 5 6 7 8 9 10 11
Last modified: May 25, 2011