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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.
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