Gary Lee Colvin - Page 15




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          Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).                  
          However, pursuant to section 7491(a), the burden of proof on                
          factual issues that affect the taxpayer’s tax liability may be              
          shifted to the Commissioner where the “taxpayer introduces                  
          credible evidence with respect to * * * such issue”.  The burden            
          will shift only if the taxpayer has, inter alia, complied with              
          substantiation requirements pursuant to the Internal Revenue Code           
          and “cooperated with reasonable requests by the Secretary for               
          witnesses, information, documents, meetings, and interviews”.               
          Sec. 7491(a)(2).  In the instant case, petitioner failed to                 
          comply with substantiation requirements and did not present                 
          credible evidence at trial.  Petitioner’s original bank                     
          statements were apparently lost during the tax examination.                 
          However, petitioner’s lack of substantiation and failure to                 
          present credible evidence were pervasive.  Accordingly, the                 
          burden of proof remains on petitioner.                                      
          II. Mailing of Notice of Deficiency                                         
               Petitioner argues that this Court lacks jurisdiction.  The             
          two requirements for this Court’s jurisdiction in a deficiency              
          case are a valid notice of deficiency issued by the Commissioner            
          and a timely filed petition by the taxpayer.  Frieling v.                   
          Commissioner, 81 T.C. 42, 46 (1983).  Because petitioner filed              
          his petition on time, the only jurisdictional issue is the                  
          validity of the notice of deficiency.                                       







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