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necessary substantiation and documentation. See sec. 7491(a);
Higbee v. Commissioner, 116 T.C. 438, 440-443 (2001). To shift
the burden, the taxpayer must also have complied with
requirements to cooperate with the Commissioner’s reasonable
requests for witnesses, information, documents, meetings, and
interviews. Sec. 7491(a)(2). The taxpayer has the burden to
prove the requirements have been met. Snyder v. Commissioner,
T.C. Memo. 2001-255 (citing H. Conf. Rept. 105-599, at 240-241
(1998), 1998-3 C.B. 747, 994-995).
Petitioners reasonably complied with respondent’s requests
for information, documents, and meetings. Petitioners also
produced credible evidence to establish that Mr. Speltz worked a
sufficient number of hours and the nature of the activities he
performed.7 Accordingly, we find that section 7491 shifts the
burden of proof to respondent. Respondent therefore bears the
burden of proving that petitioners are not entitled to exclude or
deduct Mr. Speltz’s reimbursements for insurance premiums and
medical expenses.
II. Excludability of Medical Premiums and Reimbursements
Gross income generally includes all income from whatever
source derived. Sec. 61(a). This section has been interpreted
7Petitioners conceded that some of the hours Mrs. Speltz
noted were personal and could not be counted. Mrs. Speltz
subtracted those hours from the tabulation of the hours Mr.
Speltz spent performing daycare-related tasks.
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