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Year Additional Schedule A Deductions
1996 $46,632
1997 20,933
1998 42,881
1999 23,235
2000 22,414
OPINION
I. Burden of Proof
Generally, a taxpayer in this Court bears the burden of
proof. Rule 142(a)(1). In certain circumstances, however, if
the taxpayer introduces credible evidence with respect to any
factual issue relevant to ascertaining the proper tax liability,
section 7491 shifts the burden of proof to the Commissioner.
Sec. 7491(a)(1); Rule 142(a)(2). Credible evidence is evidence
the Court would find sufficient upon which to base a decision on
the issue in favor of the taxpayer if no contrary evidence were
submitted. See Higbee v. Commissioner, 116 T.C. 438, 442 (2001);
Bernardo v. Commissioner, T.C. Memo. 2004-199 n.6. Section
7491(a)(2) imposes certain prerequisites to the application of
section 7491(a)(1), including that the taxpayer has complied with
the requirements under the Internal Revenue Code “to substantiate
any item”. Sec. 7491(a)(2)(A).
As discussed infra, petitioner has failed to introduce
credible evidence of his entitlement, under section 162, to the
disallowed Schedule C deductions. Therefore, petitioner bears
the burden of proof with respect to his entitlement to those
deductions pursuant to Rule 142(a), a burden that, because of the
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Last modified: May 25, 2011