- 7 -
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Pursuant
to section 7491(a), the burden of proof as to factual issues may
shift to the Commissioner where the taxpayer complies with
substantiation requirements, maintains records, and cooperates
fully with reasonable requests for witnesses, documents, and
other information. Petitioner has not met the requirements of
section 7491(a) because he has not met the substantiation
requirements regarding the deductions at issue.
The Commissioner carries the burden of production under
section 7491(c) with respect to an individual’s liability for
additions to tax. Once this burden is met, the taxpayer has the
burden of proving that delinquent filings did not stem from
willful neglect and that the taxpayer had reasonable cause for
late filing. See United States v. Boyle, 469 U.S. 241 (1985);
Higbee v. Commissioner, 116 T.C. 438, 446 (2001). To prove
reasonable cause, a taxpayer must show that he or she exercised
ordinary business care and prudence but nevertheless could not
file the return when it was due. Crocker v. Commissioner, 92
T.C. 899, 913 (1989); sec. 301.6651-1(c)(1), Proced. & Admin.
Regs.
II. Charitable Contribution
Petitioner claimed a charitable contribution deduction of
$435,925 on his 1998 tax return as “real estate forfeiture”.
Respondent argues that petitioner has not established a valid
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