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concluded that nothing would be gained by reopening the record
for further evidence and that justice does not require that
petitioner be permitted to amend the petition; this case was
submitted on the evidentiary record as of March 21, 2006. On
review of the entire record, we conclude that petitioner’s
testimony would not affect the result in this case.
OPINION
Under section 7491(a), the burden of proof on any factual
issue relevant to ascertaining the taxpayer’s tax liability
shifts from the taxpayer to the Commissioner if the taxpayer
produces credible evidence with respect to such factual issue.
Sec. 7491(a)(1). However, section 7491(a)(1) applies with
respect to an issue only if the taxpayer has complied with the
requirements under the Code to substantiate any item, has
maintained all records required under the Code, and has
cooperated with reasonable requests by the Commissioner for
witnesses, information, documents, meetings, and interviews. See
sec. 7491(a)(2)(A) and (B). Under section 7491(c), respondent
has the burden of production with respect to the liability of any
individual for any penalty or addition to tax.
Petitioner failed to maintain adequate records or to produce
credible evidence. Therefore, the burden of proof has not
shifted to respondent under section 7491(a)(1). In regard to the
additions to tax, petitioner has admitted that no tax return was
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