-12- VI. Respondent’s Determination On January 31, 2002, respondent issued the notice of deficiency to petitioner for the subject years.7 Respondent determined the deficiencies shown therein by disallowing all of the deductions claimed on the subject returns and applying the corporate income tax rates of section 11 to petitioner’s gross income, as reported. Respondent disallowed the deductions because none of the returns was filed timely. OPINION I. Burden of Proof The Commissioner’s determinations in a notice of deficiency are generally presumed correct, and taxpayers generally bear the burden of proving those determinations wrong. See Rule 142(a)(1); Welch v. Helvering, 290 U.S. 111, 115 (1933). In certain cases, section 7491(a) places the burden of proof upon the Commissioner. Given the manner in which we decide this case, we need not and do not decide which party bears the burden of proof in this case. II. Parties’ Arguments The parties disagree on the section 882(c)(2) requirements which serve as a prerequisite to a foreign corporation’s deducting its expenses. Petitioner argues that it meets those 7 Neither party has explained why the notice of deficiency does not address petitioner’s 1993 taxable year.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011