John R. Rinn and Donnie J. Rinn - Page 6

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                                       OPINION                                        
          I.   Burden of Proof                                                        
               Generally, the Commissioner’s determinations of unreported             
          income in a notice of deficiency are presumed correct, and the              
          taxpayer has the burden of proving that those determinations are            
          erroneous.  See Rule 142(a); Welch v. Helvering, 290 U.S. 111,              
          115 (1933).  In certain circumstances, however, section                     
          7491(a)(1) places the burden of proof on the Commissioner as to             
          any factual issue relating to the taxpayer’s liability for tax if           
          in the court proceeding the taxpayer introduces credible evidence           
          with respect to that issue.7  This rule applies only if the                 
          taxpayer has complied with applicable substantiation                        
          requirements, has maintained all records required under the Code,           
          and has cooperated with the Commissioner’s reasonable requests              
          for witnesses, information, documents, meetings, and interviews.            
          Sec. 7491(a)(2).                                                            

               6(...continued)                                                        
          Mrs. Rinn’s separate community property income.  Respondent                 
          concedes that Mr. and Mrs. Rinn’s respective deficiencies should            
          be computed to eliminate any double counting of the dental                  
          practice income and that petitioners should be treated as if they           
          filed separate returns as married persons.                                  
               7 Sec. 7491 was added to the Code by the Internal Revenue              
          Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L.            
          105-206, sec. 3001, 112 Stat. 726.  Sec. 7491(a) applies with               
          respect to examinations that are commenced after July 22, 1998.             
          RRA 1998 sec. 3001(c), 112 Stat. 727.  The record does not                  
          disclose when the examinations commenced in this case; however,             
          with respect to at least some of the tax years in issue, we                 
          assume that examinations commenced after July 22, 1998.                     





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