- 4 - In 2002 and 2003, petitioner’s Schedules C showed combined expenses of $55,301 and gross receipts of $445. Respondent denied expense deductions beyond the gross receipts earned. Discussion I. The Burden of Proof Generally, the Commissioner’s determinations are presumed correct, and the taxpayer bears the burden of proving those determinations wrong. Rule 142(a); INDOPCO, Inc. v Commissioner, 503 U.S. 79, 84 (1992); Welch v. Helvering, 290 U.S. 111, 115 (1933). Under section 7491, the burden of proof may shift from the taxpayer to the Commissioner if the taxpayer produces credible evidence with respect to any factual issue relevant to ascertaining the taxpayer’s tax liability. Sec. 7491(a)(1). In this case there is no such shift because petitioner neither alleged that section 7491 was applicable nor established that she fully complied with the requirements of section 7491(a)(2). The burden of proof remains on petitioner. II. The Period of Limitations Petitioner expressed concern in her petition that the period 3(...continued) Benson Exposition, Inc. has not filed a corporate return since its inception. Although there is some confusion as to whether the activities in this case were conducted by Benson Exposition, Inc., or by petitioner herself doing business as Lila Osborne Memorial, the analysis remains the same. See sec. 1.183-1(f), Income Tax Regs. (explaining that a taxpayer’s intent is attributable to his or her wholly owned S corporation); see also sec. 1.183-1(d)(1), Income Tax Regs.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 NextLast modified: March 27, 2008