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they suffered extensive gambling losses in 1999”.5 It is respon-
dent’s position that the burden of proof has not shifted to
respondent under section 7491(a).
The burden of proof shifts to the Commissioner of Internal
Revenue (Commissioner) with respect to the Commissioner’s deter-
mination of a deficiency if the taxpayer introduces credible
evidence with respect to any factual issue relevant to ascertain-
ing any such deficiency and complies with the requirements of
section 7491(a)(2), including the requirements, inter alia, that
(1) the taxpayer has complied with the requirements of the Code
to substantiate any item, and (2) the taxpayer has maintained all
records required by the Code. See sec. 7491(a)(1), (2)(A) and
(B).
On the record before us, we find that petitioners have not
introduced credible evidence within the meaning of section
7491(a) with respect to the respective amounts of their claimed
gambling losses for the years at issue and have not complied with
the requirements of section 7491(a)(2)(A) and (B). On that
record, we find that the burden of proof has not shifted to
5It is not clear whether petitioners are claiming that the
burden of proof has shifted to respondent under sec. 7491(a) with
respect to their claimed gambling loss deductions for both of
their taxable years 1999 and 2000, or only with respect to the
claimed gambling loss deduction for their taxable year 1999. In
any event, as discussed below, we hold that the burden of proof
has not shifted to respondent under sec. 7491(a) with respect to
either year at issue.
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Last modified: May 25, 2011