- 3 - to understanding our report. Petitioners bear the burden of proof. See Rule 142(a)(1).1 Background At the time the petition was filed, petitioners resided in Dallas, Texas. On September 3, 1991, petitioner filed a voluntary petition in bankruptcy (the bankruptcy petition) with the U.S. Bankruptcy Court for the Eastern District of Texas (the bankruptcy court). The bankruptcy petition was filed pursuant to chapter 7 of the Bankruptcy Code (11 U.S.C.). Upon the filing of the bankruptcy petition, a taxable person separate from petitioner came into existence; i.e., the bankruptcy estate (bankruptcy estate). See sec. 1398(a). A trustee (the trustee) was appointed to represent the bankruptcy estate. Among the assets of the bankruptcy estate were (1) a “$153,000 business debt” (the business debt), (2) real property located in Argyle, Texas (the Argyle property), and (3) real property located in Dallas, Texas (the Dallas property). The business debt became worthless in 1991 after becoming an asset of the estate. Both the Argyle property and the Dallas property (together, the properties) secured debts of petitioner 1 Sec. 7491, which, under certain circumstances, shifts the burden of proof to the Commissioner, is inapplicable because the examination in this case began before July 22, 1998, the effective date of that section. See Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3001(c), 112 Stat. 727.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011