William Lenihan - Page 3

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               Unless otherwise indicated, all section references are to              
          the Internal Revenue Code of 1986, as amended, and all Rule                 
          references are to the Tax Court Rules of Practice and Procedure.            
          For convenience, monetary amounts have been rounded to the                  
          nearest dollar.  Respondent bears the burden of proof with                  
          respect to (1) the items of income shown on the Nov. 10 return              
          that respondent did not take into account in determining the                
          deficiency shown in the notice and (2) the increased section                
          6651(a)(1) addition to tax, and petitioner bears the burden of              
          proof otherwise, except as provided by section 7491(c).  See Rule           
          142(a).2                                                                    

               1(...continued)                                                        
          appropriation during 2002.  If an argument is not pursued on                
          brief, we may conclude that it has been abandoned.  E.g., Mendes            
          v. Commissioner, 121 T.C. 308, 312-313 (2003).  Therefore, we               
          will treat petitioner as having abandoned those two claims and              
          will not further discuss them.                                              
               2  Sec. 7491(a) shifts the burden of proof to the Secretary            
          with respect to any factual issue relevant to ascertaining the              
          tax liability of the taxpayer if the taxpayer introduces credible           
          evidence with respect to the issue and has (1) complied with the            
          requirements of the Internal Revenue Code to substantiate any               
          item, and (2) maintained all records required by the Internal               
          Revenue Code and cooperated with reasonable requests by the                 
          Secretary for information.  See sec. 7491(a)(2) (imposing                   
          preconditions to the application of the burden-shifting rule                
          found in sec. 7491(a)(1)).  On brief, respondent argues that                
          petitioner has failed to satisfy those preconditions.  Petitioner           
          has neither responded to respondent’s argument nor proposed that            
          we find facts consistent with the conclusion that he has                    
          satisfied the stated preconditions.  It is petitioner’s burden to           
          prove that he has satisfied the preconditions found in sec.                 
          7491(a)(2).  See, e.g., Krohn v. Commissioner, T.C. Memo.                   
          2005-145.  He has failed to carry that burden, and, therefore,              
                                                             (continued...)           





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