Cliff Connors - Page 13

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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.                         
               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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