- 23 -
notice provided in pertinent part:
(a) As a result of adjustments in 1998, you do not have
a net operating loss carryback in 1996 and 1997.
Therefore, taxable income is increased $360,919 and
$124,219 for 1996 and 1997 respectively.
(b), (c) t is determined that the losses claimed in the
amounts of $784,668[19] on Schedule E and $21,749[20] on
Form 4797 for the disposition of Kildare Timmy partner-
ship is not allowed. You have not established that you
are entitled to the loss. [Reproduced literally.]
OPINION
Burden of Proof
Petitioners bear the burden of proving that the determina-
tions in the notice are erroneous.21 See Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933).
The Court’s Evaluation of Evidence
in the Record on Which Petitioners Rely
Petitioners have attempted to satisfy their burden of proof
in this case through certain testimonial and documentary evi-
dence.
18(...continued)
losses. See supra note 3.
19See supra note 15.
20See supra note 15.
21The parties do not address the application of sec. 7491(a)
in the instant case. In any event, on the record before us, we
find that petitioners did not introduce credible evidence with
respect to the factual issues presented. On that record, we
further find that petitioners have failed to carry their burden
of establishing that they satisfied the applicable requirements
of sec. 7491(a)(2). Under such circumstances, we conclude that
the burden of proof does not shift to respondent under sec.
7491(a) with respect to the factual issues presented.
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