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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).
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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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Last modified: May 25, 2011