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provided in the Code and cooperate with the Commissioner. See
sec. 7491(a)(2).
Although petitioners claimed that section 7491(a) applies,
petitioners failed to introduce sufficient evidence to shift the
burden to respondent. Nonetheless, our findings in this case are
based on a preponderance of the evidence. See Arevalo v.
Commissioner, 124 T.C. 244 (2005).
ADA Tax Credit
Section 44(a) is included in calculating the general
business credit pursuant to section 38. Sec. 38(a) and (b).
Section 44(a) provides a disabled access credit for an “eligible
small business”. The amount of this credit is equal to 50
percent of the “eligible access expenditures” of an “eligible
small business” that exceed $250 but that do not exceed $10,250
for the year. Sec. 44(a). Therefore, in order to claim the
disabled access credit, a taxpayer must demonstrate that (1) the
taxpayer is an “eligible small business” for the year in which
the credit is claimed, and (2) the taxpayer has made an “eligible
access expenditure” during that year. If the taxpayer cannot
fulfill both of these requirements, the taxpayer is not eligible
to claim the section 44 credit for that year.
“Eligible small business” is defined as any person that had
gross receipts of not more than $1 million for the preceding
taxable year or not more than 30 employees during the preceding
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Last modified: May 25, 2011