Steve Gerald Huisenfeldt - Page 9

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          Program.  In other words, respondent contends that it would be              
          more appropriate to multiply petitioner’s gross sales, $91,281,             
          by the Tip Compliance Program tip rate of 15.4 percent to arrive            
          at an unreported room service tip income figure of $14,057.                 
               Also, in the notice of deficiency, respondent determined               
          that petitioner is liable for the accuracy-related penalty                  
          pursuant to section 6662(a) and (b)(1) for the taxable year 2000            
          of $591.60.                                                                 
               As a general rule, the determinations of the Commissioner in           
          a notice of deficiency are presumed correct, and the taxpayer               
          bears the burden of proving the Commissioner’s determinations in            
          the notice of deficiency to be in error.  Rule 142(a); Welch v.             
          Helvering, 290 U.S. 111, 115 (1933).  As one exception to this              
          rule, section 7491(a) places upon the Commissioner the burden of            
          proof with respect to any factual issue relating to liability for           
          tax if the taxpayer maintained adequate records, satisfied the              
          substantiation requirements, cooperated with the Commissioner,              
          and introduced during the Court proceeding credible evidence with           
          respect to the factual issue.  Although neither party alleges the           
          applicability of section 7491(a), we conclude that the burden of            
          proof has not shifted with respect to the unreported income.                
          However, respondent has the burden of production with respect to            

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