Terri L and Austin W. Hartsock - Page 9

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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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