- 5 - The Commissioner’s determinations set forth in a notice of deficiency generally are presumed correct, and the taxpayer bears the burden of showing that the determinations are in error. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner where the taxpayer complies with substantiation requirements, maintains records, and cooperates fully with reasonable requests for witnesses, documents, and other information. Petitioners contend that the burden of proof shifts to respondent. Broadly construed, their argument appears to be: (1) They fully cooperated with respondent by providing copies of their records to him, and (2) respondent conceded in a letter that respondent bears the burden of proof. Based on our review of the record, we conclude that petitioners fully cooperated with respondent’s requests for documents and other information. “For the burden to be placed on the Commissioner, however, the taxpayer must comply with the substantiation and record-keeping requirements of the Internal Revenue Code.” Higbee v. Commissioner, 116 T.C. 438, 441 (2001). For the reasons discussed infra, petitioners did not comply with these requirements. Accordingly, this argument fails. Petitioners also rely on a letter from respondent dated June 2, 2003. The letter informs petitioners that the statute of limitations period for assessing their 2000 Federal tax liabilityPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011