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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.
OPINION
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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