Alec Jeffrey Megibow - Page 23

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                         (1) General rule.--If, in any court                          
                    proceeding, a taxpayer introduces credible                        
                    evidence with respect to any factual issue                        
                    relevant to ascertaining the liability of the                     
                    taxpayer for any tax imposed by subtitle A or B,                  
                    the Secretary shall have the burden of proof with                 
                    respect to such issue.                                            
                         (2) Limitations.--Paragraph (1) shall apply                  
                    with respect to an issue only if--                                
                              (A) the taxpayer has complied with the                  
                         requirements under this title to substantiate                
                         any item;                                                    
                              (B) the taxpayer has maintained all                     
                         records required under this title and has                    
                         cooperated with reasonable requests by the                   
                         Secretary for witnesses, information,                        
                         documents, meetings, and interviews; * * *                   
                              *    *    *    *    *    *    *                         
                    (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                     
               penalty, addition to tax, or additional amount imposed                 
               by this title.  [See also Internal Revenue Service                     
               Restructuring & Reform Act of 1998, Pub. L. 105-206,                   
               sec. 3001(c), 112 Stat. 727, regarding effective date.]                
          Section 7491 is applicable here in that the examinations in this            
          case began after the statute’s effective date.                              
               With respect to the income adjustments at issue, petitioner            
          has not met the prerequisites of section 7491(a)(2) for placing             
          the burden on respondent.  The record reflects a failure on                 
          petitioner’s part to substantiate items, to show that he                    
          maintained adequate books and records, and to cooperate with                
          respondent.  With respect to the accuracy-related penalty, the              






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Last modified: May 25, 2011