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petitioners received $142 of interest income that was not
reported on the 2001 return.
The notice further disallowed Schedule C deductions as
follows:
Item Claimed Allowed Disallowed
Interest $1,044 -0- $1,044
Repairs & maintance 7,640 $5,084 2,556
Commissions & fees 16,000 -0- 16,000
Travel 1,600 -0- 1,600
Meals & entertainment2,300 -0- 2,300
Other expenses 9,195 1,995 7,200
Car & truck expenses17,716 2,267 15,449
Burden of Proof
Generally, the burden of proof is on the taxpayer. Rule
142(a)(1). Under section 7491, the burden of proof shifts from
the taxpayer to the Commissioner if the taxpayer produces
credible evidence with respect to any factual issue relevant to
ascertaining the taxpayer’s liability. Sec. 7491(a)(1).
Petitioners have neither argued that the burden of proof should
shift nor satisfied the criteria that would cause the burden of
proof to shift. Given the lack of documentation and information
provided by petitioners in this case, we conclude that the burden
of proof remains with petitioners.
Omitted Interest Income
Petitioners did not present any argument or evidence that
they did not receive $142 of interest income during the taxable
year 2001. Respondent’s determination is accordingly sustained.
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Last modified: May 25, 2011