- 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