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112 T.C. 183 (1999); Wayne Bolt & Nut Co. v. Commissioner, 93
T.C. 500 (1989); Estate of Jayne v. Commissioner, 61 T.C. 744,
748-749 (1974); McSpadden v. Commissioner, supra.
Respondent’s new position, which seeks to increase the
disallowance of petitioners’ Schedule C deductions from $39,527
to $47,521 and to exclude the $39,527 in Schedule C gross
receipts on the ground that the items were reportable by PPS,
falls in this latter category--it merely clarifies or develops
the original determination. The theory in the amended answer is
the same as in the notice of deficiency (i.e., the income and
deductions were reportable by PPS), it does not increase the
deficiency amount, and it does not require the presentation of
new evidence. Therefore, the burden is not shifted to
respondent.
The burden of proof on factual issues that affect a
taxpayer’s tax liability may also be shifted to respondent where
the “taxpayer introduces credible evidence with respect to * * *
such issue.” Sec. 7491(a)(1). Petitioner has not alleged that
section 7491(a) applies; however, we need not decide whether the
burden shifted to respondent pursuant to section 7491(a) because
our analysis is based on the record before the Court and not on
who bears the burden of proof.
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