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Consequently, Mr. Penn properly executed, pursuant to a Form
2848, the last consent to extend the period of limitations for
1998 and 1999 to June 30, 2003. Because respondent issued the
notice of deficiency before such date, the statute of limitations
does not bar the assessment of any deficiency in income tax for
1998 and 1999.
B. Burden of Proof
As a general rule, the Commissioner’s determinations are
presumed correct, and the taxpayer bears the burden of proving
that those determinations are erroneous. Rule 142(a); INDOPCO,
Inc. v. Commissioner, 503 U.S. 79, 84 (1992); Welch v. Helvering,
290 U.S. 111, 115 (1933).
By virtue of section 7491(a), however, the burden of proof
may, under certain circumstances, be shifted to the Commissioner.
On the basis of the record, we hold that section 7491(a) does not
operate to shift the burden of proof to respondent because: (1)
Petitioner did not introduce credible evidence with respect to
any factual issue relevant to ascertaining his liability; (2) he
did not comply with the requirements to substantiate his
deductions; and (3) he did not maintain all required records.
Sec. 7491(a); Higbee v. Commissioner, 116 T.C. 438 (2001). In
view of the foregoing, we proceed with our analysis on the basis
that petitioner bears the burden of proving that respondent’s
determinations are erroneous.
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