- 6 - OPINION I. Unreported Income From Liberty Temp Generally, the taxpayer bears the burden of proving the Commissioner’s determinations incorrect. Rule 142(a)(1); Welch v. Helvering, 290 U.S. 111, 115 (1933). If the taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the taxpayer’s tax liability, the Commissioner bears the burden of proof with respect to that issue. Sec. 7491(a)(1). However, the burden of proof will not shift to the Commissioner where the taxpayer fails to maintain records in accordance with the Internal Revenue Code or fails to cooperate with reasonable requests made by the Commissioner for witnesses, information, documents, meetings, and interviews. Sec. 7491(a)(2)(B). Section 7491(a)(1) does not shift the burden of proof to respondent with respect to petitioner’s liability for a deficiency in tax because petitioner has not produced credible evidence with respect to that issue, nor has petitioner maintained records or cooperated with respondent’s reasonable requests. Therefore, petitioner bears the burden of proving incorrect respondent’s determination that $447,084 received from Unwrapped is included in petitioner’s income in 2002. Petitioner has not met this burden.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011