- 12 -
Home Mortgage Interest
and Points -- 5,516
Taxable income 3,270 6,767
OPINION
I. Burden of Proof
Generally, the Commissioner’s determinations in a notice of
deficiency are presumed to be correct, Welch v. Helvering, 290
U.S. 111, 115, (1933); Anastasato v. Commissioner, 794 F.2d 884,
886 (3d Cir. 1986), and the taxpayer bears the burden of
producing evidence to show that the Commissioner’s determinations
are erroneous, Rule 142(a); Welch v. Helvering, supra; Anastasato
v. Commissioner, supra.
Section 7491(a) modifies the general rule regarding the
burden of proof in court proceedings arising in connection with
examinations commencing after July 22, 1998. Internal Revenue
Service Restructuring and Reform Act of 1998, Pub. L. 105-206,
sec. 3001(c)(1), 112 Stat. 727. When a taxpayer has introduced
credible evidence with respect to a factual issue relevant to his
liability for tax, section 7491(a) may shift the burden from the
taxpayer to the Commissioner. As a prerequisite for shifting the
burden to the Commissioner, section 7491(a) requires a taxpayer
to: (1) Comply with substantiation requirements; (2) maintain
records and cooperate with the Commissioner’s reasonable requests
for documents, information, interviews, etc.; and (3) in the case
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