- 5 - OPINION A. Whether Respondent Bears the Burden of Proof Under Section 7491(a) Petitioners contend that respondent bears the burden of proof under section 7491(a). We disagree. Under section 7491(a), the Commissioner bears the burden of proof with respect to factual issues if, inter alia, the taxpayer has: (1) Complied with substantiation requirements under the Internal Revenue Code, sec. 7491(a)(2)(A); (2) maintained all records required by the Internal Revenue Code, sec. 7491(a)(2)(B); and (3) cooperated with reasonable requests by the Secretary for information, documents, and meetings, id. Taxpayers bear the burden of proving that these requirements are met. See H. Conf. Rept. 105-599, at 239 (1998), 1998-3 C.B. 747, 993; S. Rept. 105-174, at 45 (1998), 1998-3 C.B. 537, 581. The record does not show whether petitioners substantiated their bases, kept records of their expenses, or cooperated with respondent’s agents. Thus, section 7491(a) does not apply. Respondent’s determination is presumed to be correct, and petitioners bear the burden of proof. Rule 142(a)(1); Welch v. Helvering, 290 U.S. 111, 115 (1933). B. Whether Petitioners May Deduct More Depreciation on the Crenshaw Blvd. Property Than Respondent Allowed for 1999 Petitioners contend that they may deduct depreciation of $11,059 with respect to the Crenshaw Blvd. property for 1999.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011