Bennett Geiger - Page 9

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          limitations for criminal prosecution, as well as assessment of              
          taxes and penalties against her for substantial understatement.             
               Notwithstanding her prior denials, Ms. Clark testified at              
          trial that she and Ms. Ellis embezzled money from BBTS.  Ms.                
          Clark’s testimony, however, did not provide even a general amount           
          of money that she allegedly embezzled, nor could she reconstruct            
          an amount by linking any specific items purchased with allegedly            
          embezzled funds.                                                            
               Ms. Clark claimed that Ms. Ellis invited her to join an                
          ongoing embezzlement scheme shortly after Ms. Clark resumed                 
          working at BBTS.  Ms. Ellis was aware that Ms. Clark was                    
          petitioner’s former wife and that Ms. Clark and petitioner were             
          engaged in a personal relationship at the time.                             
               Ms. Clark’s then husband, Ted Clark, supposedly knew of Ms.            
          Clark’s embezzlement.  Ted Clark did not testify at the trial.              
               As a general rule, the Commissioner’s determinations are               
          presumed correct, and the taxpayer bears the burden of proving              
          otherwise.  Rule 142(a)(1); Welch v. Helvering, 290 U.S. 111, 115           
          (1933).  Section 7491(a)(1) provides that the burden of proof               
          will shift to the Commissioner when the taxpayer has introduced             
          credible evidence with respect to any factual issue relevant to             
          ascertaining the liability of the taxpayer for any tax.  However,           
          the burden of proof does not shift to the Commissioner unless the           

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