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115 (1933). Section 7491 may modify the foregoing general rule
in specified circumstances, with principles relevant to
deficiency determinations set forth in subsection (a) and rules
governing penalties and additions to tax addressed in subsection
(c).
Section 7491(a)(1) may shift the burden to the Commissioner
with respect to factual issues where the taxpayer introduces
credible evidence, but the provision operates only where the
taxpayer establishes that he or she has complied under section
7491(a)(2) with all substantiation requirements, has maintained
all required records, and has cooperated with reasonable requests
for witnesses, information, documents, meetings, and interviews.
See H. Conf. Rept. 105-599, at 239-240 (1998), 1998-3 C.B. 747,
993-994. Here, petitioners have made no argument directed toward
burden of proof and consequently have not shown that all
necessary prerequisites for a shift of burden have been met. In
addition, respondent alleged on opening brief that petitioners
bear the burden of proof, and petitioners made no attempt to
rebut that allegation in their reply brief. Their reply brief
does, however, at several junctures offer to present further
substantiating documents to respondent and to the Court, which at
minimum suggests that all pertinent information may not have been
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