Michael J. Rovell - Page 5
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142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Section
7491 shifts the burden of proof to the Commissioner if the
taxpayer introduces credible evidence with respect to any factual
issue relevant to ascertaining a tax liability, provided the
taxpayer has maintained books and records, and has cooperated
with reasonable requests by the Commissioner for witnesses,
information, documents, meetings, and interviews. Based on our
review of the entire record in this case, we are convinced that
the burden has not shifted to respondent on any issue before the
Taxpayers are permitted deductions only as a matter of
legislative grace, and only as specifically provided by statute.
INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New
Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). In
addition, section 6001 places upon the taxpayer the requirement
to maintain records sufficient to sustain the veracity of
taxpayer’s income and expenses.
After taking into account petitioner’s concession,1 our
decision rests on whether petitioner has presented the Court with
evidence sufficient to support the deductions disallowed by
respondent for the year in issue.
1 At trial, petitioner conceded that of the $19,400
deduction for State and local taxes at issue in this case, $7,400
of that amount was actually for Federal taxes, leaving only
$12,000 of the original amount in dispute at issue.
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Last modified: November 10, 2007