David Taylor Enterprises, Inc. & Subsidiaries - Page 9

                                        - 9 -                                         
          dealership held the classic cars for sale to customers, then we             
          must find for petitioner.  We begin with who has the burden of              
          proof.                                                                      
          A.  Burden of Proof                                                         
               The Commissioner’s determination in the notice of deficiency           
          is generally presumed to be correct, and the taxpayer bears the             
          burden of proving otherwise.  Rule 142(a); Welch v. Helvering,              
          290 U.S. 111, 115 (1933).  If a taxpayer introduces credible                
          evidence with respect to a factual issue relevant to ascertaining           
          the taxpayer’s tax liability, however, the burden shifts to the             
          Commissioner with respect to that issue, assuming the taxpayer              
          meets certain other requirements.11  Sec. 7491(a)(1).  The burden           
          of proof does not shift unless the taxpayer has complied with the           
          substantiation requirements, maintained required records, and               
          cooperated with the Commissioner’s reasonable requests for                  
          witnesses, information, and meetings.  Sec. 7491(a)(2)(A) and               
          (B).  The taxpayer has the burden of establishing that each                 
          requirement of section 7491(a)(2) has been met.  Higbee v.                  
          Commissioner, 116 T.C. 438 (2001).  Respondent concedes that                


               10(...continued)                                                       
          question whether property is held primarily for sale to customers           
          in the ordinary course of one's business is "purely factual."               
          Pritchett v. Commissioner, 63 T.C. 149, 162 (1974).                         
               11Sec. 7491(a) applies to examinations commenced after July            
          22, 1998, and therefore applies to this case involving tax years            
          1999 and 2000.                                                              





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011