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Commissioner in certain circumstances, but petitioner does not
contend, nor has she shown, that she satisfies the prerequisites
for the application of section 7491(a). In fact, as discussed
infra, petitioner has failed to substantiate adequately many of
the charitable contribution deductions at issue. Therefore, she
has failed to satisfy the prerequisite of section 7491(a)(2)(A)
“to substantiate any item.” Moreover, respondent introduced
uncontradicted testimony by the examining agent that petitioner
refused his request for bank statements and “did not feel she had
to answer any question.” As a result, she has also violated the
prerequisite of section 7491(a)(2)(B) to cooperate “with
reasonable requests for * * * information [and] documents”.
Petitioner bears the burden of proof.
Under section 7491(c), respondent retains the burden of
production (but not the overall burden of proof) with respect to
petitioner’s liability for the accuracy-related penalties
determined by respondent under section 6662(a). See Higbee v.
Commissioner, 116 T.C. 438, 446-447 (2001).
II. Code and Regulations
A. Code
In pertinent part, section 170(a)(1) provides that a
taxpayer may deduct “any charitable contribution * * * payment of
which is made within the taxable year”, and “[a] charitable
contribution shall be allowable as a deduction only if verified
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Last modified: May 25, 2011