Roy W. and Sharon P. Oswandel - Page 6




                                         -6-                                          
          petitioner’s ministerial activities.  Petitioners provided the              
          car insurance policy statement, Colorado vehicle registration/tax           
          ownership receipt, and car payment history to substantiate their            
          deduction for the payment of personal property taxes.                       
                                   OPINION                                            
               The burden of proof is on petitioners to show that                     
          respondent’s determinations set forth in the notice of deficiency           
          are incorrect.  Rule 142(a)(1); Welch v. Helvering, 290 U.S. 111,           
          115 (1933).  In certain circumstances, if the taxpayer introduces           
          credible evidence with respect to any factual issue relevant to             
          ascertaining the taxpayer’s proper tax liability, section                   
          7491(a)(1) places the burden of proof on the Commissioner.  Sec.            
          7491(a)(1); Rule 142(a)(2).  For the burden to shift to the                 
          Commissioner, the taxpayer must comply with the substantiation              
          and recordkeeping requirements of the Internal Revenue Code                 
          (Code).  Sec. 7491(a)(2)(A) and (B).  In addition, section                  
          7491(a)(2) requires that the taxpayer cooperate with reasonable             
          requests by the Commissioner for “witnesses, information,                   
          documents, meetings, and interviews”.  Sec. 7491(a)(2)(B).  We              
          conclude that the burden of proof has not shifted to respondent             
          with respect to any of the issues in this case.  To this end, we            
          find that petitioners failed to cooperate with respondent during            
          the audit of their 2000 and 2001 Federal income tax returns.  We            








Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next 

Last modified: November 10, 2007