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I. Burden of Proof
In general, the Commissioner’s determinations in the
deficiency notice are presumed correct, and the taxpayer has the
burden of proving that the Commissioner’s determinations are in
error. See Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115
(1933). The burden of proof may shift to the Commissioner with
respect to a factual issue relevant to a taxpayer’s liability for
tax under certain circumstances, however, if the taxpayer
introduces credible evidence and establishes that he or she
substantiated items, maintained required records, and fully
cooperated with the Commissioner’s reasonable requests. Sec.
7491(a)(2)(A) and (B).6
At trial, we granted the estate’s motion to shift the burden
of proof to respondent, because we found that the estate
introduced credible evidence including the testimony of several
factual witnesses, substantiated items, maintained records, and
cooperated with respondent’s reasonable requests.
A. The Estate’s Cooperation With Respondent
Respondent urges us to revisit the question of the burden of
proof now, arguing that the estate did not cooperate with
respondent’s reasonable requests because the estate filed a
6Sec. 7491 is effective with respect to court proceedings
arising in connection with examinations by the Commissioner
commencing after July 22, 1998, the date of enactment of the
Internal Revenue Service Restructuring and Reform Act of 1998,
Pub. L. 105-206, sec. 3001(a), 112 Stat. 726.
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