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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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Last modified: November 10, 2007