Regina Bruce - Page 4

                                        - 4 -                                         
          because the Department of the Treasury had refused to submit a              
          sworn affidavit disclosing “who made the determination of                   
          deficiency; was it the Secretary who made the determination; if             
          it was not the Secretary, then who and was that person authorized           
          to make the determination; and by whom was that person authorized           
          to make the determination of deficiency.”                                   
               Petitioner bore the burden of proving the determinations by            
          respondent were incorrect; she did nothing to advance her                   
          position or fulfill the burden of proof.2  In fact, when the                
          Court sought to elicit from her whether she might be entitled to            
          dependency exemptions or deductions for charitable contributions,           
          petitioner refused to answer, stating:  “It’s not relevant.  If             
          someone doesn’t have taxable income, why would it be relevant”.             
          The Court, therefore, sustains respondent on the determinations             
          for 1998, 1999, 2000, and 2001.                                             




               2Generally, the determinations of the Commissioner in a                
          notice of deficiency are presumed correct, and this presumption             
          places the burden on the taxpayer to show that the determinations           
          are incorrect.  Rule 142(a); INDOPCO, Inc. v. Commissioner, 503             
          U.S. 79, 84 (1992); Welch v. Helvering, 290 U.S. 111, 115 (1933).           
          Sec. 7491, under certain circumstances, alters the burden of                
          proof with respect to a taxpayer’s liability for taxes in court             
          proceedings arising in connection with examinations commencing              
          after July 22, 1998.  Although this examination commenced after             
          July 22, 1998, petitioner does not satisfy the requirements of              
          sec. 7491(a).  Not only did petitioner not produce credible                 
          factual evidence that she was not liable for the tax, but also              
          she did not cooperate with respondent before trial.  Therefore,             
          petitioner bears the burden of proof at trial.                              





Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011