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Contracts, etc. Respondent initiated an examination based on the
third party payer reports.
During the examination, petitioner’s former spouse filed a
Form 8857, Request for Innocent Spouse Relief, and respondent
granted his request pursuant to section 6015(c). The former
spouse was relieved from joint and several liability with respect
to the deficiency. Thereafter, respondent issued a notice of
deficiency to petitioner, determining a $3,784 deficiency.
Petitioner has since conceded that she received and failed to
report the items of income.
Discussion
Generally, the Commissioner’s determinations in a notice of
deficiency are presumed correct, and the taxpayer has the burden
to prove that the determinations are in error. See Rule 142(a);
Welch v. Helvering, 290 U.S. 111, 115 (1933). But the burden of
proof on factual issues that affect a taxpayer’s tax liability
may be shifted to the Commissioner where the “taxpayer introduces
credible evidence with respect to * * * such issue.” See sec.
7491(a)(1). The burden will shift only if the taxpayer has
complied with the substantiation requirements and has cooperated
with the Commissioner’s reasonable requests for witnesses,
information, documents, meetings, and interviews. See sec.
7491(a)(2). Petitioner has not alleged or proven that section
7491(a) applies; accordingly, the burden remains on her.
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Last modified: March 27, 2008