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requests for witnesses, information, documents, meetings, and
interviews. Sec. 7491(a)(2)(A) and (B).6
We find that petitioners failed to comply with respondent’s
reasonable requests. Id. Although petitioners produced
documents respondent requested, petitioners refused to answer
respondent’s questions about their farming activity. Respondent
was forced to issue petitioners a summons to obtain necessary
information to complete the audit. Accordingly, we find that the
burden of proof remains with petitioners.
II. Whether Petitioners Engaged in Their Lemon Farming Activity
for Profit
A. Section 183 Generally
We now address whether petitioners engaged in their lemon
farming activity for profit within the meaning of section 183
during the years at issue. Section 183(a) provides generally
that if an individual engages in an activity and “if such
activity is not engaged in for profit, no deduction attributable
to such activity shall be allowed under this chapter except as
provided in this section.” Deductions that would be allowable
without regard to whether the activity is engaged in for profit
are allowed under section 183(b)(1). Deductions that would be
allowable only if the activity were engaged in for profit are
allowed under section 183(b)(2), but only to the extent that the
6Sec. 7491 is effective with respect to court proceedings
arising in connection with examinations by the Commissioner
commencing after July 22, 1998, the date of enactment of the
Internal Revenue Service Restructuring and Reform Act of 1998,
Pub. L. 105-206, sec. 3001(a), 112 Stat. 726.
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