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the life of Mr. Purcell; (2) proceeds from the sale of his home;
and (3) proceeds from the liquidation of his brokerage and Roth
individual retirement accounts (Roth IRA). Petitioner Carolee
Purcell received one or more checks drawn on the trust account
and payable to her in 2003. She received more than $170,000 from
the trust following Mr. Purcell’s death.
Petitioners timely filed their 2003 joint Federal income tax
return. Petitioners did not report any distributions from the
trust on the 2003 return. Respondent determined a $5,415
deficiency in petitioners’ Federal income tax for 2003,
attributed to petitioners’ failure to report a $45,033 trust
distribution. Petitioners timely petitioned for a
redetermination.
Discussion
I. Burden of Proof
In general, the Commissioner’s determinations set forth in a
notice of deficiency are presumed correct, and the taxpayer bears
the burden of showing that the determinations are in error. Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Under
certain circumstances, the burden of proof as to factual matters
shifts to the Commissioner. Sec. 7491(a). However, petitioners
have neither alleged that section 7491 applies nor established
their compliance with the requirements of section 7491(a)(2)(A)
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Last modified: March 27, 2008