John E. Hunter, II and Alma E. Hunter - Page 13

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          exercise of discretion is without sound basis in fact or law.               
          See Freije v. Commissioner, 125 T.C. 14, 23 (2005).                         
               The Hunters timely petitioned the Court in response to a               
          notice of deficiency.  The deficiency case was consolidated with            
          the collection case.  The Hunters may challenge their underlying            
          tax liability in this consolidated proceeding.  We review                   
          respondent’s determination of the underlying tax liability de               
          novo, and we review the determination with respect to the                   
          proposed collection actions for abuse of discretion.  See Sego v.           
          Commissioner, supra; Goza v. Commissioner, supra.                           
          1.  The Deficiency in Tax                                                   
               The Commissioner’s determination is presumed correct, and a            
          taxpayer generally bears the burden of proving otherwise.  Rule             
          142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).  The burden           
          may shift to the Commissioner if the taxpayer introduces credible           
          evidence and satisfies the requirements under section 7491(a)(2)            
          to substantiate items, maintain required records, and fully                 
          cooperate with the Commissioner’s reasonable requests.  Sec.                
          7491(a).  The Hunters have neither argued that section 7491(a)              
          applies nor established that they complied with the requirements            
          of section 7491(a)(2).  The Hunters therefore bear the burden of            
               Section 55 imposes, in addition to all other taxes imposed             
          by subtitle A, an AMT on noncorporate taxpayers.  The                       

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