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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 liability
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Last modified: May 25, 2011