- 6 - The burden of proof with regard to this issue is on respondent because he asserted an increased deficiency in an amended pleading. Rule 142(a). Respondent established petitioners’ receipt of the State income tax refund and accompanying interest income by placing into evidence certified documents from the New York State Department of Taxation and Finance, which report that petitioners received a State income tax refund and interest income with regard to the State income taxes paid for 1998 in 1999. Further, the parties placed into evidence petitioners’ 1998 tax return, which reported a claimed deduction for State income taxes paid in 1998 that reduced petitioners’ tax for 1998, and petitioners’ 1999 tax return, which did not report as income the State income tax refund and interest income received in 1999. Petitioners did not provide any evidence to dispute their receipt of the refund and interest income in 1999 and their failure to report such as income on their 1999 tax return. In fact, the parties stipulated that petitioners received the State income tax refund and applicable interest income in 1999 and did not include such income on their 1999 tax return. On the basis of the evidence on the record, we hold that petitioners are liable for the increased deficiency because of their receipt of a State income tax refund and applicable interest income during 1999.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011