- 13 -
OPINION
A. Whether the Statute of Limitations Bars Assessment and
Collection of Petitioners’ Tax for 1999
Petitioners contend that the statute of limitations bars
assessment and collection of their tax for 1999 because
respondent issued the notice of deficiency on January 16, 2003.
We disagree.
Petitioners timely filed their 1999 return on or before
April 15, 2000. Generally, the Commissioner must assess tax
within 3 years after the due date of a timely filed return, sec.
6501(a) and (b)(1); i.e., in this case, on or before April 15,
2003. Respondent timely issued the notice of deficiency on
January 16, 2003. The statute of limitations does not bar
assessment and collection of petitioners’ tax for 1999.
B. Whether Petitioners or Respondent Bears the Burden of Proof
for Issues Other Than Fraud
Respondent bears the burden of proving that petitioner is
liable for fraud. See sec. 7454(a); Rule 142(b). Petitioners
contend that respondent bears the burden of proof under section
7491(a) for all other issues as well. We disagree.
The burden of proof with respect to a factual issue shifts
from the taxpayer to the Commissioner if, in addition to meeting
other requirements, the taxpayer has: (1) Complied with
substantiation requirements under the Internal Revenue Code, sec.
7491(a)(2)(A); (2) maintained all records required by the
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011