- 11 - OPINION I. Burden of Proof Normally, in a case before this Court, the taxpayer bears the burden of proof.4 Rule 142(a)(1). However, if the Commissioner raises a new issue or seeks an increase in a deficiency, the Commissioner has the burden of proof as to the new issue or increased deficiency. Id. In addition, in any case involving the issue of fraud with intent to evade tax, the burden of proof in respect of that issue is on the Commissioner. Sec. 7454(a); Rule 142(b). In this case, the only open issues are issues as to which respondent concedes he has the burden of proof. In order to satisfy that burden of proof, respondent must prove by a preponderance of the evidence that he properly disallowed petitioner’s Schedule A deductions, and he must also prove by clear and convincing evidence that petitioner is liable for the fraud penalty under section 6663. Rule 142. II. Substantiation of Schedule A Deductions A. Medical and Dental Expenses Section 213(a) authorizes a taxpayer, if he itemizes his deductions, to deduct expenses paid during the taxable year for 4Although a taxpayer may contend that the burden of proof should shift to the Commissioner under sec. 7491, sec. 7491 does not shift the burden of proof in this case. Respondent concedes that he has the burden of proof with respect to the only open issues--the increased deficiency and the fraud penalty.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011