Donald Ertz - Page 33

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               Petitioner’s arguments regarding the compromise of penalties           
          and interest do not relate to whether there are grounds for a               
          compromise.  Instead, these arguments go to whether the amount              
          petitioner offered to compromise his tax liability was                      
          acceptable.  As addressed above, respondent’s determination that            
          the facts and circumstances of petitioner’s case did not warrant            
          acceptance of his offer-in-compromise was not arbitrary or                  
          capricious and was thus not an abuse of discretion.  Because no             
          grounds for compromise exist, we need not address whether                   
          respondent can or should compromise penalties and interest in an            
          effective tax administration offer-in-compromise.  See Keller v.            
          Commissioner, supra.                                                        
               2.   Information Sufficient for the Court To Review                    
                    Respondent’s Determination                                        
               Petitioner argues that respondent failed to provide the                
          Court with sufficient information “so that this Court can conduct           
          a thorough, probing, and in-depth review of respondent’s                    
          determinations.”  Petitioner’s argument is without merit.                   
               Generally, a taxpayer bears the burden of proving the                  
          Commissioner’s determinations incorrect.  Rule 142(a)(1); Welch             
          v. Helvering, 290 U.S. 111, 115 (1933).14  The burden was on                

               14  While sec. 7491 shifts the burden of proof and/or the              
          burden of production to the Commissioner in certain                         
          circumstances, this section is not applicable in this case                  
          because respondent’s examination of petitioner’s returns did not            
          commence after July 22, 1998.  See Internal Revenue Service                 
                                                             (continued...)           




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