- 5 - C. 2000 On his 2000 Federal income tax return, petitioner claimed an $11,792 deduction for home mortgage interest, a $1,520 deduction for gifts to charity by cash or check, and “other miscellaneous deductions” totaling $9,184. On his Schedule C, petitioner claimed $19,690 in total expenses. In the notice of deficiency, respondent disallowed $6,862 of petitioner’s home mortgage interest deduction and disallowed petitioner’s charitable contribution deduction, other miscellaneous deductions, and Schedule C expenses in full.2 OPINION Generally, respondent’s deficiency determinations set forth in the notices of deficiency are presumed correct, and petitioner bears the burden of showing the determinations are in error. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Section 7491(a), however, shifts the burden of proof to the Commissioner with respect to a factual issue affecting the tax liability of a taxpayer who meets certain preliminary conditions. Petitioner failed to cooperate with respondent, and he did not claim that section 7491(a) applies. Accordingly, section 7491(a) 2 Respondent disallowed $20,279 in Schedule C expenses. Petitioner, however, claimed only $19,690 in Schedule C expenses. This discrepancy can be accounted for in the Rule 155 computation.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011