Leonard and L. Melnik Grossman - Page 10

                                       - 10 -                                         
          substantiate any item, has maintained all records as required by            
          the Code and cooperated with reasonable requests made by                    
          respondent for witnesses, information, documents, meetings, and             
          interviews, and meets the net worth limitation set forth in                 
          section 7430(c)(4)(A)(ii) if the taxpayer is a partnership,                 
          corporation, or trust.  Sec. 7491(a)(2).  Additionally, section             
          7491(a)(3) provides that section 7491(a)(1) does not apply to any           
          issue with respect to which the Code provides for a specific                
          burden of proof.                                                            
               Petitioners’ position is that section 7491(a) is applicable            
          in deciding whether their petition was timely filed.  Respondent            
          argues that section 7491(a) is not applicable to this issue                 
          because whether petitioners’ petition was timely filed is not a             
          factual issue relevant to the ascertainment of petitioners’ tax             
          liability imposed by subtitle A or B.  In the alternative,                  
          respondent argues that because the regulations prescribed by the            
          Secretary pursuant to section 7502(b) are legislative                       
          regulations, section 7491(a)(3) precludes the application of                
          section 7491(a).  Because we decide the jurisdictional issue by             
          the preponderance of the evidence, we need not address the                  
          application of section 7491(a) to the instant matter.  Blodgett             
          v. Commissioner, 394 F.3d 1030, 1039 (8th Cir. 2005), affg. T.C.            
          Memo. 2003-212.                                                             







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011