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investment interest, contributions, and miscellaneous itemized
deductions.
Other than amounts allowed by respondent in the notices of
deficiency or immediately prior to trial, petitioner did not
attempt to substantiate the claimed deductions. Petitioner
asserts that the tax returns in issue were prepared by a
representative of Economy Income Tax Services (EITS). Petitioner
further suggests that EITS defrauded many taxpayers, including
herself, and that the amounts reflected on the returns are
inaccurate and not based on reality. Petitioner argues that the
Internal Revenue Service (IRS) was complicit in permitting EITS
to continue to prepare returns while under investigation by the
IRS.
Discussion
Burden of Proof
In general, the Commissioner’s determinations set forth in a
notice of deficiency are presumed correct, and the taxpayer bears
the burden of showing that the determinations are in error. Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Pursuant
to section 7491(a), the burden of proof as to factual matters
shifts to the Commissioner under certain circumstances.
Petitioner has neither alleged that section 7491(a) applies nor
established her compliance with the requirements of section
7491(a)(2)(A) and (B) to substantiate items, maintain records,
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Last modified: November 10, 2007