Estate of Sarah M. Davenport, Deceased, Richard Davenport, Executor - Page 9

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                                       OPINION                                        
          I.  Burden of Proof                                                         
               As a general rule, determinations by the Commissioner are              
          presumed correct, and the taxpayer bears the burden of proving              
          otherwise.  Rule 142(a).  Section 7491 may operate, however, in             
          specified circumstances to place the burden on the Commissioner.            
          Section 7491 is applicable to court proceedings that arise in               
          connection with examinations commencing after July 22, 1998, and            
          reads in pertinent part:                                                    
               SEC. 7491.  BURDEN OF PROOF.                                           
                    (a) Burden Shifts Where Taxpayer Produces Credible                
               Evidence.--                                                            
                         (1) General rule.--If, in any court                          
                    proceeding, a taxpayer introduces credible                        
                    evidence with respect to any factual issue                        
                    relevant to ascertaining the liability of the                     
                    taxpayer for any tax imposed by subtitle A or B,                  
                    the Secretary shall have the burden of proof with                 
                    respect to such issue.                                            
                         (2) Limitations.--Paragraph (1) shall apply                  
                    with respect to an issue only if--                                
                              (A) the taxpayer has complied with the                  
                         requirements under this title to substantiate                
                         any item;                                                    
                              (B) the taxpayer has maintained all                     
                         records required under this title and has                    
                         cooperated with reasonable requests by the                   
                         Secretary for witnesses, information,                        
                         documents, meetings, and interviews; * * *                   
          See also Internal Revenue Service Restructuring and Reform Act of           
          1998, Pub. L. 105-206, sec. 3001(c), 112 Stat. 727, regarding               






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