- 7 -
made with respect to the trust’s property. We conclude that
petitioners may not deduct the charitable contribution in 2002.
We begin with the burden of proof.
I. Burden of Proof
In general, the Commissioner’s determinations in the
deficiency notice are presumed correct, and the taxpayer bears
the burden of proving that the Commissioner’s determinations are
in error. See Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115
(1933). The burden of proof may shift to the Commissioner under
certain circumstances, however, if taxpayers introduce credible
evidence and establish that they substantiated items, maintained
required records, and fully cooperated with the Commissioner’s
reasonable requests. Sec. 7491(a)(1) and (2)(A) and (B).2
Petitioners admitted that they failed to respond to
respondent’s two letters seeking information about their
deduction. In addition, petitioners have not argued that the
burden of proof should shift to respondent. Accordingly, we find
that the burden of proof remains with petitioners.
2Sec. 7491 is effective with respect to court proceedings
arising in connection with examinations by the Commissioner
commencing after July 22, 1998, the date of enactment of the
Internal Revenue Service Restructuring and Reform Act of 1998,
Pub. L. 105-206, sec. 3001(a), 112 Stat. 726.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011