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The total payments made on the GITIC loan for 1995 and 1996
and the total payments made on the GXE loan for 1995 and 1996, as
summarized above, coincide with the amounts set forth in
petitioner’s September 8, 1998, letter. However, a comparison of
the Forms 5472 that petitioner attached to its Forms 1120X for
1995 and 1996 with the interest amounts in the September 8, 1998,
letter reveals the following:
1995 1996
Interest paid to
GITIC per 9/8/98 letter $177,010.41 $139,798.61
Interest paid to GXE
per 9/8/98 letter 164,762.08 77,099.91
Total Interest
per 9/8/98 letter 341,772.49 216,898.52
Interest reported as paid
to GXE on Forms 5472
attached to amended returns 341,772.49 99,666.39
Difference -0- 117,232.13
OPINION
I. Burden of Proof
Generally, the Commissioner’s determination is presumed
correct, and the taxpayer bears the burden of proving that the
determination is erroneous. Rule 142(a)(1); Welch v. Helvering,
290 U.S. 111, 115 (1933). Petitioner argues, however, that the
burden of proof should shift to respondent because the notice of
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Last modified: March 27, 2008