- 15 -
Petitioners timely petitioned this Court to redetermine all
of respondent’s adjustments.
OPINION
I. Burden of Proof
Petitioners contend that under section 7491(a), respondent
bears the burden of proof relating to all items in the notice of
deficiency. Petitioners also contend that respondent’s
determinations relating to 1999 are arbitrary and capricious, but
we will address that issue separately with respect to those
items.
As a general rule, taxpayers bear the burden of proving that
the Commissioner’s determinations are incorrect. Rule 142(a).
However, section 7491(a) may in specific circumstances place the
burden on the Commissioner with regard to any factual issue
relating to a taxpayer’s liability for tax if the taxpayers
produce credible evidence with respect to that issue and meet the
requirements found in section 7491(a)(2). The requirements
applicable here are that the taxpayers have (1) complied with all
substantiation requirements of the Code, (2) maintained all
required records, and (3) cooperated with reasonable requests by
the Secretary for witnesses, information, documents, meetings,
and interviews. The taxpayers bear the burden of proving that
they have met the requirements of section 7491(a)(2). Miner v.
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: March 27, 2008