Kenneth and Dorothy Hitchen - Page 12

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          determined that the amounts of tax required to be shown on                  
          petitioners’ returns, accepting the partnership item on the 1987            
          return as correct, are $7,586 in 1984, $7,326 in 1985, $8,301 in            
          1987, $7,620 in 1988, and $9,788 in 1989.                                   
               Taxpayers generally bear the burden of proving the                     
          Commissioner’s determinations in a notice of deficiency to be in            
          error.  Rule 142(a).  While section 7491 may shift the burden of            
          production and/or burden of proof to the Commissioner in certain            
          circumstances, this section is not applicable in these cases                
          because respondent’s examination of petitioners’ returns did not            
          commence after July 22, 1998.  See Internal Revenue Service                 
          Restructuring and Reform Act of 1998, Pub. L. 105-206, sec.                 
          3001(c), 112 Stat. 727.                                                     
          I.   Farming Losses and General Business Credits                            
               Taxpayers are required to maintain records sufficient to               
          establish the amounts of income, deductions, and other items                
          which underlie their Federal income tax liabilities.  Sec. 6001;            
          sec. 1.6001-1(a), (e), Income Tax Regs.                                     
               Petitioners’ position regarding the farming losses and the             
          general business credits is unclear.  Because their arguments               
          focus on the amount of money that they invested in the Hoyt                 
          partnership rather than on the items appearing on their returns,            
          and because petitioners admit that they do not know how the                 

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