Veronica Chu - Page 5

                                        - 5 -                                         
               Petitioner submitted to the Court Topaz’s unfiled Forms                
          1120S for the years 1998, 1999, and 2000.  Topaz’s unfiled Form             
          1120S for the year 1998 shows $8,658 of ordinary income.  Topaz’s           
          unfiled return for 1999 shows a $95 loss.                                   
               Topaz’s unfiled Form 1120S for the year 2000 was signed by             
          petitioner on May 1, 2004.  The return contains four zeroes in              
          four different boxes in the Income section and on Schedule D the            
          description Upstream Stock and date of acquisition, August 1,               
          2000, are listed.  The return does not contain any additional               
          information.                                                                
          Meetings                                                                    
               Petitioner did not attend meetings with respondent scheduled           
          for January 13, April 13 and 20, or May 6 and 11, 2004.                     
                                       OPINION                                        
          I.   Deficiency                                                             
               A.   Burden of Proof                                                   
               Section 7491(a) places the burden of proof on the                      
          Commissioner with regard to certain factual issues involving                
          examinations commenced after July 22, 1998.  Petitioner does not            
          assert that section 7491(a) shifts the burden to respondent.                
          Therefore, the burden of proof remains on petitioner.5  See Maher           
          v. Commissioner, T.C. Memo. 2003-85.                                        

               5  Petitioner also did not comply with reasonable requests             
          by respondent for meetings in order to shift the burden to                  
          respondent.  Sec. 7491(a)(2).                                               





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011