Harvey L. Hoover - Page 21

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               Section 7491(a) shifts the burden of proof to the                      
          Commissioner when the taxpayer has satisfied certain                        
          requirements.  Section 7491 is effective with respect to court              
          proceedings arising in connection with examinations commencing              
          after July 22, 1998.  Internal Revenue Service Restructuring and            
          Reform Act of 1998, Pub. L. 105-206, sec. 3001(c)(1), 112 Stat.             
          727.  Respondent concedes that the examination in these cases               
          began after July 22, 1998.                                                  
               Specifically, section 7491(a)(1) provides:                             
               If, in any court proceeding, a taxpayer introduces                     
               credible evidence with respect to any factual issue                    
               relevant to ascertaining the liability of the taxpayer                 
               for any tax imposed by subtitle A or B, the Secretary                  
               shall have the burden of proof with respect to such                    
          Section 7491(a)(2) further provides that the burden of proof                
          shifts to the Commissioner only when the taxpayer has:  (1)                 
          “complied with the requirements under this title to substantiate            
          any item”, and (2) “maintained all records required under this              
          title and has cooperated with reasonable requests by the                    
          Secretary for witnesses, information, documents, meetings, and              
               Petitioner failed to maintain books and records relating to            
          his farming business.  Furthermore, the parties have stipulated             
          that petitioner did not submit any books or records to                      
          respondent’s agents during the examination of his 1990, 1991, and           
          1992 income tax returns.  Because petitioner failed to satisfy              

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