Lee B. Arberg and Melissa A. Quinn - Page 23




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          complied under section 7491(a)(2) with all substantiation                   
          requirements, has maintained all required records, and has                  
          cooperated with reasonable requests for witnesses, information,             
          documents, meetings, and interviews.  See H. Conf. Rept. 105-599,           
          at 239-240 (1998), 1998-3 C.B. 747, 993-994.  Here, petitioners             
          have made no argument directed towards burden of proof and                  
          consequently have not shown that all prerequisites for a shift of           
          burden have been met.  In addition, leaving aside issues of                 
          substantiation recounted more fully below, the above-mentioned              
          motions to compel production of documents and responses to                  
          interrogatories would suggest that petitioners’ cooperation has             
          been less than exemplary.  The Court therefore cannot conclude              
          that section 7491(a) effects any shift of burden in the instant             
          case.                                                                       
               Section 7491(c) provides that “the Secretary shall have the            
          burden of production in any court proceeding with respect to the            
          liability of any individual for any penalty, addition to tax, or            
          additional amount imposed by this title.”  The Commissioner                 
          satisfies this burden of production by “[coming] forward with               
          sufficient evidence indicating that it is appropriate to impose             
          the relevant penalty” but “need not introduce evidence regarding            
          reasonable cause, substantial authority, or similar provisions.”            
          Higbee v. Commissioner, 116 T.C. 438, 446 (2001).  Rather, “it is           
          the taxpayer’s responsibility to raise those issues.”  Id.  The             







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