§7491(a) — Burden shifts where taxpayer produces credible evidence

485, 493 (2017), supplementing and overruling in part 147 T.C.

4The Court finds that these exhibits are relevant to the case at hand; accordingly we overrule respondent's objections.

The Court overruled petitioners' objections and received respondent's evidence .

We overrule those objections at this time.

Petitioners have not argued or shown that the burden of proof should shift to respondent under section 7491(a), and we conclude that section 7491(a) does not apply under the circumstances here.

3 Pursuant to section 7491(a), the burden of proof may shift to the Commissioner if the taxpayer introduces credible evidence with respect to any factual issues relevant to ascertaining the taxpayer’s tax liability. The Court concludes that section 7491(a) does not apply because petitioner has not produced any evidence that he has satisfied the preconditions for its application.

Argument Four: Section 7491 and Penalties Section 7491(a) applies only to “factual issue[s] relevant to ascertaining the liability of the taxpayer for any tax imposed by subtitle A or B.” Section 7491(a) does not apply to section 6662 penalties (found in subtitle F of the Code).

We conclude that section 7491(a) does not apply here because petitioners have not produced any evidence that they have satisfied the preconditions for its application.

4 Pursuant to section 7491(a), the burden of proof may shift to the Commissioner if the taxpayer introduces credible evidence with respect to any factual issues relevant to ascertaining the taxpayer’s tax liability. The Court concludes that section 7491(a) does not apply because petitioners have not produced any evidence that they have satisfied the preconditions for its application.

Swanson does not contend that the burden of proof should shift to respondent under section 7491(a), and we conclude that section 7491(a) does not apply here.

Petitioners do not contend that the burden of proof should shift to respondent under section 7491(a). II. Evidentiary Issue On November 22, 2021, petitioners filed a Motion to Strike the Testimony of George Krmpotich, a revenue agent who testified. They argue that the APA provides grounds to strike his testimony. We disagree. Deficiency cases are subject to de novo review, and so the APA does not apply to them.

4 Section 7491(a), which shifts the burden of proof to the Commissioner in certain circumstances, does not apply to federal employment tax disputes.

We conclude that section 7491(a) does not apply here because petitioners have not produced evidence that they have satisfied the preconditions for its application.

If the taxpayers establish that they paid or 2 Pursuant to section 7491(a), the burden of proof may shift to the Commissioner if the taxpayer introduces credible evidence with respect to any factual issues relevant to ascertaining the taxpayer’s tax liability. The Court concludes that section 7491(a) does not apply because petitioners have not produced any evidence that they have satisfied the preconditions for its application.

We determine a worker’s employment status by applying common law concepts, see §§ 3121(d)(2), 3306(i), while keeping in mind that doubtful questions should be resolved in favor of employment, Ewens & 6 Section 7491(a), which shifts the burden of proof to the Commissioner in certain circumstances, does not apply to federal employment tax disputes.

We will deny this Motion because section 7491(a) by its terms can shift the burden of proof only with respect to any factual issue relevant to ascertaining the taxpayer’s liability for tax imposed by subtitle A or B of the Code. The Code imposes interest under section 6601, which is not part of subtitle A or B; accordingly, section 7491 does not apply to petitioner’s interest- abatement claim.

Tillman-Kelly did not seek a shift in the burden of proof under section 7491(a) and that the submission of a case under Rule 122(a) does not shift the burden of proof. See Rule 122(b). 5 The flush text of section 104(a) provides that the general rule against exclusion of emotional-distress damages does not apply to “the amount paid for medical care” attributable to emotional distress.

“This Court has held that section 7491(a) applies only when the underlying tax liability is at issue in a CDP case.” Davison v. Commissioner, T.C. Memo. 2019-26, at *10, aff’d, 805 F. App’x 259 (5th Cir. 2020). As we will explain infra pp. 6–8, the underlying tax liabilities are not at issue in this case, and thus section 7491 is inapplicable.

The Court concludes that section 7491(a) does not apply here because petitioners have not produced any evidence that they have satisfied the preconditions for its application.

7491(a). This presumption does not apply.

7491(a) does not apply here because petitioners have not produced evidence that they have satisfied the preconditions for its application.

7491(a) does not apply here because petitioner has not produced evidence that it has satisfied the preconditions for its application.

7491(a) does not apply here because petitioners have not produced evidence that they have satisfied the preconditions for its application.

7491(a)(1) and (2), ifthe taxpayerproduces credible evidence with respect to any relevant factual issue and meets certain other requirements, the burden ofproofshifts from the taxpayerto the Commissioner as to that factual issue. However, sec. 7491(a) does not apply to employment tax disputes (and petitioner does not argue otherwise).

7491(a) does not apply here because petitioners have not produced any evidence that they have satisfied the preconditions for its application.

Section 7491(a) may place the burden ofproofon the Commissioner as to a factual issue ifthe taxpayer introduces credible evidence with respect to that issue and satisfies certain other requirements. Petitioner did not allege that section 7491(a) applies, nor did he satisfy the requirements ofthat section. Accordingly, section 7491(a) does not apply, and petitioner bears the burden ofproof.

7491(a) does not apply here because petitioner has not produced any evidence that she has satisfied the preconditions for its application.

Accordingly, section 7491(a) does not apply, and the burden of proofon this issue remains with petitioners.

As discussed infra, petitioner is precluded from challenging his entire underlying tax liability for 2005 in this proceeding; consequently, section 7491(a) is inapplicable here, and the burden ofproofis not shifted to respondent.

7491(a) does not apply here because petitioners have not produced any evidence that they have satisfied the preconditions for its application.

In addition, section 7491(a) may serve to place the burden ofproofon the Commissioner as to any factual issue relevant to ascertaining the taxpayer's liability ifthe taxpayer (1) introduces credible evidence with respect to that issue and (2) satisfies certain other requirements. However, although petitioners' testimony was credible, section 7491 does not apply because there is no dispute between the parties regarding any factual issue.

However, we find Portillo to be distinguishable from the instant case.

Petitioner does not contend that the burden of proofshould shift to respondent under section 7491(a), nor has it established that the requirements for shifting the burden ofproofhave been met. Accordingly, the burden ofproofremains on petitioner. See sec. 7491(a)(2). As an initial matter we note that section 280A, which allows a deduction for home office expenses, is inapplicable to C corporations such as petitioner.

7491(a) is inapplicable because it does not apply to taxes imposed by subtitle D ofthe Code, such as the taxes under sec.

In addition, section 7491(a) may serve to place the burden ofproofon the Commissioner ifthe taxpayer introduces credible evidence and satisfies certain other requirements. Petitioner did not allege that section 7491(a) applies, nor did she introduce credible evidence or otherwise satisfy the requirements ofsection 7491(a). Accordingly, that section does not apply, and petitioner bears the burden ofproof.

Petitioners have not claimed or shown that the burden ofproofas to any relevant factual issue should shift to respondent under section 7491(a). They bear the burden ofestablishing that they are entitled to any bad debt deductions for the years in issue. Section 166(a) generally allows a deduction for "any debt which becomes worthless within the taxable year." For taxpayers other than corporations, section 166(d) provides that section 166(a) does not apply with respect to any "nonbusiness debt".

7491(a) does not apply here because petitioner has not produced any evidence that he has satisfied the preconditions for its application.

7491(a) does not apply here because petitioner has not produced any evidence that he has satisfied the preconditions for its application.

We find that petitioners introduced no credible evidence with respect to this issue and that section 7491(a) does not apply.

And petitioners have not argued that the burden ofproof should be shifted to respondent; thus section 7491(a) does not apply.

7491(a)(1). But petitioner introduced little if any "credible evidence," sec. 7491(a)(1), and he did not "maintain[] all records required" by the Code, sec. 7491(a)(2)(B). He thus bears the burden ofproof. A. Business Bad Debt Deduction Section 166(a)(1) provides that "[t]here shall be allowed as a deduction any debt which becomes [wholly] worthless within the taxable year." For a nonbusi- ness bad debt held by a taxpayer other than a corporation, section 166(a)(1) does not apply, and the taxpay

7491(a); Estate ofTurner v. Commis- sioner, 138 T.C. 306, 309 (2012), supplementing T.C. Memo. 2011-209. I. Bad Debt Loss A. Governing Statutory Framework Section 166(a)(1) allows as a deduction any bona fide debt that becomes worthless within the taxable year. For a nonbusiness bad debt held by a taxpayer other than a corporation, section 166(a)(1) does not apply, and the taxpayer is allowed a short-term capital loss for the taxable year in which the debt becomes completely worthless.

7491(a)(2);" Estate ofDieringer v. Commissioner, 146 T.C. 117, 127-128 (2016). We hold that section 7491(a) does not apply to shift the burden ofproofto respondent.

Section 7491(a), which shifts the burden ofproofto the IRS under certain circumstances, does not apply with respect to any factual dispute in this case because Canatella did not keep adequate books and records.

7491(a); Estate of Turner v. Commissioner, 138 T.C. 306, 309 (2012). A. The Bad Debt Deduction Section 166(a)(1) provides that "[t]here shall be allowed as a deduction any debt which becomes [wholly] worthless within the taxable year." For a nonbusi- ness bad debt held by a taxpayer other than a corporation, section 166(a)(1) does not apply, and the taxpayer is allowed a short-term capital loss for the taxable year in which the debt becomes completelyworthless.

At trial petitioners moved to shift the burden ofproofto respondent under section 7491(a)(1). Several ofthe issues on which petitioners seek to shift the burden of proofinvolve legal conclusions, not factual matters; section 7491(a)(1) does not apply to shift the burden ofproofas to them.

7491(a) does not apply here because petitioner has not produced any evidence that he has satisfied the preconditions for its application.

7491(a) may also shift the burden ofproofto the Secretary concerning any factual issue relevant to ascertaining the taxpayer's liability for income tax where the taxpayer introduces credible evidence and has satisfied certain other conditions, including that the taxpayer maintained all records required by the Internal Revenue Code. Sec. 7491(a)(2)(B). Since, as discussed p. 9, petitioner has failed to maintain such records for 2009, sec. 7491(a) does not apply in this case.

7491(a) does not apply to employment tax disputes.

However, section 7491(a) is inapplicable to excise tax liabilities, which are imposed under subtitle D ofthe Code.

However, section 7491(a) is inapplicable to excise tax liabilities, which are imposed under subtitle D ofthe Code.

7491(a); Estate of Turner v. Commissioner, 138 T.C. 306, 309 (2012). A. The Bad Debt Deduction Section 166(a)(1) provides that "[t]here shall be allowed as a deduction any debt which becomes [wholly] worthless within the taxable year." For a nonbusi- ness bad debt held by a taxpayer other than a corporation, section 166(a)(1) does not apply, and the taxpayer is allowed a short-term capital loss for the taxable year in which the debt becomes completelyworthless.

Section 7491(a), which shifts the burden ofproofto the Commissioner under certain circumstances, is inapplicable in TFRP cases.

Section 7491(a) sometimes shifts the burden ofproofto the Commissioner, but that section does not apply where a taxpayer fails to satisfy the recordkeeping and substantiation requirements.

7491(a)(2)(A) and (B). We therefore conclude that sec. 7491(a)(1) does not apply in this case.

7491(a) is inapplicable in this case.

7491(a)(1), and the taxpayer satisfies certain other conditions, including substantiation ofany item and cooperation with the Government's requests for witnesses and information, sec. 7491(a)(2). See also Higbee v. Commissioner, 116 T.C. 438, 440-441 (2001). We need not and do not decide whether section 7491(a) applies to shift the burden ofproofas petitioners desire. This is because, as discussed below, we hold that section 6901 does not apply to these cases because the record fails to establis

7491(a)(1), and the taxpayer satisfies certain other conditions, including substantiation ofany item and cooperation with the Government's requests for witnesses and information, sec. 7491(a)(2). See also Higbee v. Commissioner, 116 T.C. 438, 440-441 (2001). We need not and do not decide whether section 7491(a) applies to shift the burden ofproofas petitioners desire. This is because, as discussed below, we hold that section 6901 does not apply to these cases because the record fails to establis

7491(a)(1), and the taxpayer satisfies certain other conditions, including substantiation ofany item and cooperation with the Government's requests for witnesses and information, sec. 7491(a)(2). See also Higbee v. Commissioner, 116 T.C. 438, 440-441 (2001). We need not and do not decide whether section 7491(a) applies to shift the burden ofproofas petitioners desire. This is because, as discussed below, we hold that section 6901 does not apply to these cases because the record fails to establis

In some cases the burden ofproofwith respect to relevant factual issues may shift to the Commissioner under section 7491(a). Because the Court decides this case without regard to the burden ofproof, section 7491 is inapplicable.

7491(a)(1), and the taxpayer satisfies certain other conditions, including substantiation ofany item and cooperation with the Government's requests for witnesses and information, sec. 7491(a)(2). See also Higbee v. Commissioner, 116 T.C. 438, 440-441 (2001). We need not and do not decide whether section 7491(a) applies to shift the burden ofproofas petitioners desire. This is because, as discussed below, we hold that section 6901 does not apply to these cases because the record fails to establis

7491(a) is inapplicable herein because petitioners have failed to.introduce credible evidence that respondent's adjustments were in error, see sec.

7491(a) is inapplicable herein because petitioners have failed to.introduce credible evidence that respondent's adjustments were in error, see sec.

7491(a), the burden ofproofmay shift to the Commissioner ifthe taxpayer introduces credible evidence with respect to any factual issue. This section is inapplicable because petitioner failed to maintain records and substantiate deductions.

5Section 7491(a)(1), which shifts the burden ofproofto the Secretary in certain circumstances, does not apply to employmenttax disputes.

7491(a) is inapplicable herein because petitioners have failed to.introduce credible evidence that respondent's adjustments were in error, see sec.

7491(a) does not apply here because petitioner has not produced evidence that he has satisfied the preconditions for its application.

7491(a) is inapplicable because petitioner failed to introduce credible evidence within the meaning ofsec.

Section 7491(a) sometimes shifts to the Commissioner part or all ofthe.burden ofproofwhere the taxpayer introduces credible evidence of a factual matter, but that section does not apply where a , taxpayer fails to satisfy the related requireinents.

7491(a), the burden ofproofmay shift to respondent if petitioners introduce credible evidence with respect to any factual issue. This section is inapplicable because petitioners failed to maintain business records.

7491(a) provides that the burden ofproofshall shift to the Commissioner ifthe taxpayer introduces credible evidence relating to the issue. This section is inapplicable because petitioner failed to introduce credible evidence.

7491(a), the burden ofproofmay shift to the Commissioner ifthe taxpayer introduces credible evidence with respect to any factual issue. This section is inapplicable because petitioners failed to maintain records.

7491(a) does not apply here because petitioner has not produced any evidence that she has satisfied the preconditions for its application.

Section 7491(a)(1), which shifts the burden ofproofto the Secretary in certain other circumstances, does not apply to employment tax disputes.

7491(a) is inapplicable because petitioner failed to introduce credible evidence within the meaning ofsec.

In some cases the burden ofproofwith respect to factual issues may shift to the Commissioner under section 7491(a). Because there is no factual dispute in this case, section 7491 is inapplicable.

7491(a), petitioner has the burden ofproofunless he introduces credible evidence relating to the issue. See Rule 142(a). This section is inapplicable because petitioner failed to introduce credible evidence within the meaning ofsec.

7491(a). In any event, sec. 7491(a) does not apply to shift the burden ofproofbecause petitionerhas failed to substantiate items, maintain records, and cooperate fully with respondent.

7491(a) does not apply here because petition has not shownthat he has satisfied the preconditions for its applicatio See sec.

7491(a), which shifts the burden ofproof to the Commissioner in certain situations. We conclude that sec. 7491(a) does not apply because petitioners have not produced any evidence that they have satisfied the preconditions for its application.

7491(a) does not apply here because petitioner has not produced any evidence that he has satisfied the preconditions for its application.

- 42 - Petitioners do not contend that section 7491(a) (1) applies. In addition, petitioners have not established that they satisfied the requirements of section 7491(a) (2). We hold that section 7491(a) (1) does not apply to shift the burden of proof to respondent.

Section 7491(a) sometimes shifts the burden ofproofto the Commissioner, but that section does not apply here because we find that petitioners failed to satisfy each requirement set forth in section 7491(a)(2)(A) and (B).20 Petitioners argue that respondent has the burden ofproofirrespective ofany applicability ofsection 7491 because, they state, respondent never examined their joint Federal income tax ret

Section 7491(a) sometimes shifts the burden ofproofto the Commissioner, but that section does not apply where a taxpayer fails to satisfy the recordkeeping and substantiation requirements.

7491(a) is inapplicable because petitioner failed to introduce credible evidence within the meaning ofsec.

7491(a) does not apply here because petitioner has not produced any evidence that he has satisfied the preconditions for its application.

7491(a) is inapplicable.

7491(a) does not apply here because petitioners have not produced any evidence that they have satisfied the preconditions for its application.

7491(a) (1) . -However .this provision does not apply if the tax ayer has failed to co ply with the substantiation require ents.

7491(a). Petitioner argues that section 7491(a) shifts the burden to respondent because petitioner has introduced credible evidence with respect to every factual issue. Respondent counters that section 7491(a) does not apply because petitioner did not comply with respondent's reasonable requests for information during informal discovery, which necessitated the.use of formal discovery procedures.

7491(a) does not apply here to shift the burden of proof to respondent.

7491(a) does not apply here because petitioners have not produced any evidence that they have satisfied the preconditions for its application.

Since petitioner has failed to introduce credible evidence, section 7491(a) does not apply.

Accordingly, section 7491(a) is inapplicable, and the burden remains .on petitioner to prove that respondent's determination of the income tax deficiency is incorrect .

Accordingly, we conclude that section 7491(a) does not apply and the burden of proof on the charitable contribution deductions issue has not been shifted to respondent.

7491(a), which shifts the burden of proof to the Commissioner in certain situations. We conclude that sec. 7491(a) does not apply because petitioner has not produced any evidence that he has satisfied the preconditions for its application.

Accordingly, we conclude that section 7491(a) does not apply and the burden of proof on the charitable contribution deductions issue has not been shifted to respondent.

7491(a); and because she has failed to substantiate her claims or introduce credible evidence for any of the issues, sec. 7491(a) does not apply.

We conclude that section 7491(a) does not apply here becaus e petitioners have not produced any evidence that they have satisfied the preconditions for its application .

7491(a) does not apply here because petitioners have not produced credible evidence, nor have they satisfied the other conditions for the application of sec.

7491(a) does not apply here because petitioner has not produced any evidence that he has satisfied the preconditions for its application.

Furthermore, petitioners did not claim 4 - 6 that section 7491(a) applies . Accordingly, section 7491(a) does not apply in this case .

In some cases the burden of proof with respect to relevant factual issues may shift to the Commissioner under section 7491(a) ., As there is no dispute as to a factual issue, section 7491(a) is inapplicable to this case .

Accordingly, the case is decided by the application of law to the undisputed facts, and section 7491(a) is inapplicable .

Section 7491(a), providing for a shift to the Commissioner of the burden of proof in certain circumstances, is inapplicable to trust fund penalty cases .15 In any event we find on a preponderance ofthe evidence that employment taxes were not paid, that petitioner wa s 15Sec .

In some cases the burden of proof with respect to relevant factual issues may shift to the Commissioner under section 7491(a) . Because there is no dispute as to any factual issue in this case, .section 7491(a) 'is inapplicable .

Accordingly, the case is decided by the application of law to the undisputed facts, and section 7491(a) is inapplicable .

- 9 - Petitioners argue that pursuant to section 7491(a) the burden of proof should shift to respondent. Section 7491(a)(1) provides that if “in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability of the taxpayer * * * the Secretary shall have the burden of proof with respect to such issue.” This burden-shifting provision is inapplicable unless the taxpayer has, among other things, complied with all requirements u

Petitioners’ argument applies Griffin II too broadly and fails to acknowledge that Griffin II is distinguishable from this case. In Griffin v. Commissioner, supra at 1020, the taxpayers appealed an unfavorable Tax Court decision and argued that the Tax Court erred in holding that the taxpayers failed to present sufficient evidence to shift the burden of proof to the Commissioner under section 7491(a).

7491(a). Petitioner concedes that section 7491(a) does not apply.13 Consequently, petitioner bears the burden of proof herein.

is decided by the application of law to the undispute d section 7491(a) is inapplicable .

Accordingly, this case is decided by the application of law to the undisputed'facts, and section 7491(a) is inapplicable .

7491(a) is inapplicable bec'use petitioner failed to introduce credible evidence within the maning of sec .

Because there is no factual issue in dispute, section 7491(a) is inapplicable, and the burden of proof does not shift to respondent .

Based on the following, because petitioner has not satisfied the requirements of section 7491, section 7491(a) is inapplicable .

7491(a), which shifts the burden of proof as to factual matters to the Commissioner under certain circumstances, does not apply because petitioners have neither alleged its application nor established that they have satisfied the preconditions for its application.

The case is decided by applying the law to the undisputed facts, and section 7491(a) is inapplicable .

7491(a), which shifts the burden of proof to the Commissioner in certain situations. This Court concludes that sec. 7491 does not apply because petitioner has not produced any evidence that establishes the preconditions for its application.

7491(a) is inapplicable to this case as respondent’s examination of the 1982, 1983, and 1984 tax years began before July 22, 1998.

7491(a)(1) does not apply in the instant case because petitioner did not comply with the substantiation and document production requirements.

7491(a), which shifts the burden of proof to the Commissioner in certain situations. This Court concludes that sec. 7491 does not apply because petitioner has not produced any evidence that establishes the preconditions for its application.

7491(a) does not apply in the instant case to shift the burden of proof to respondent because petitioner did not raise the issue and also did not comply with the substantiation and record keeping requirements of sec .

Discussion As the issue for decision in this case is a question o f law, section 7491(a) does not apply .

7491(a) does not apply in the instant case to shift the burden of proof to respondent because petitioner did not raise the issue and also did not comply with the substantiation and record keeping requirements of sec.

7491(a)(1). Section 7491(a)(1) applies only if an individual taxpayer complies with substantiation requirements, maintains all required records, and cooperates with reasonable requests by the Commissioner for witnesses, information, documents, meetings, and interviews. Sec. 7491(a)(2). In this case, section 7491 is inapplicable because petitioner did not introduce any credible evidence with respect to the gambling winnings and Social Security benefits and failed to comply with the substantiation

7491(a)(1) does not apply.

7491(a) does not apply in this case to shift the burden of proof to respondent because petitioner neither alleged that sec.

The burden of proof may shift to the Commissioner under section 7491(a). Because petitioner failed to comply with the requirements of section 7491(a)(2), however, section 7491 is inapplicable.

7491(a), which shifts the burden of proof to the Commissioner in certain situations, and we conclude that sec. 7491(a) does not apply.

7491(a); Rule 142(a)(2). Sec. 7491 applies to court cases arising in connection with examinations commencing after July 22, 1998. See Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3001(c)(2), 112 Stat. 726. Because the examination underlying this case commenced before July 23, 1998, sec. 7491(a) does not apply to shift the burden of proof to respondent.

7491(a), which shifts the burden of proof to the Commissioner in certain situations. This Court concludes that sec. 7491 does not apply because petitioner has not produced any evidence that establishes the preconditions for its application.

7491(a)(2). In this case, section 7491 is inapplicable because petitioner did not introduce any credible evidence with respect to the origination of his disability and failed to comply with the substantiation, cooperation, and record-keeping requirements.

7491(a) which shifts the burden of proof to the Commissioner in certain situations. This Court concludes that sec. 7491 does not apply because petitioner has not produced any evidence that establishes the preconditions for its application.

Because petitioners did not comply with the requirements of section 7491(a)(2), section 7491(a)(1) is inapplicable here.

Under section 7491(a)(1), the burden of proof may shift to the Commissioner. Because the alimony deduction issue is a question of law, section 7491 is inapplicable, and the Court decides the issue without regard to the burden of proof.

Section 7491 does not apply here because petitioner has failed to substantiate his deductions and provide evidence other than his own testimony.

Section 7491(a) does not apply because this case involves a legal issue.

7491(a) does not apply in this case to shift the burden of proof to respondent because petitioner neither alleged that sec.

Section 7491(a) does not apply because this case involves a legal issue.

7491(a) does not apply in this case to shift the burden of proof to respondent because petitioner neither alleged that sec.

Section 7491(a) does not apply because this case involves a legal issue.

Section 7491(a) does not apply in this case to shift the burden of proof to respondent.

Therefore, section 7491(a) is inapplicable.

Section 7491(a) does not apply in this case to shift the burden of proof to respondent.

Unreimbursed Employee Business Expenses Under section 7491(a)(1), the burden of proof may shift to the Commissioner. Because the unreimbursed employee business expense issue is a question of law, section 7491 is inapplicable, and the Court decides the issue without regard to the burden of proof.

7491(a), which shifts the burden of proof to the Commissioner under certain circumstances, does not apply with respect to any factual dispute in this case because petitioner did not keep adequate books and records and did not meet statutory substantiation requirements.

Because the issues to be decided are questions of law, section 7491(a) is inapplicable, and the Court decides the issues without regard to the burden of proof.

Discussion Because we decide this case on the preponderance of the evidence, without regard to the burden of proof, section 7491(a) is inapplicable.

The burden of proof may shift to the Commissioner under section 7491(a). Because petitioner failed to comply with the requirements of section 7491(a)(2), however, section 7491 is inapplicable.

The burden of proof may shift to the Commissioner under section 7491(a). Because petitioner failed to comply with the requirements of section 7491(a)(2), however, section 7491 is inapplicable.

Section 7491(a), which shifts the burden of proof to the Commissioner under certain circumstances, does not apply with respect to this factual circumstance because petitioners neither alleged that section 7491 was applicable nor established that they fully complied with the statutory substantiation requirements of section 7491, as shown below.

Unreimbursed Employee Business Expenses Under section 7491(a)(1), the burden of proof may shift to the Commissioner. Because the unreimbursed employee business expense issue is a question of law, section 7491 is inapplicable, and the Court decides the issue without regard to the burden of proof.

- 4 - Discussion Because petitioners did not comply with the requirements of section 7491(a), section 7491 is inapplicable here. Tax Year 1999 Section 280A, Disallowance of Certain Expenses in Connection With Business Use of Home, Rental of Vacation Homes, etc., limits otherwise allowable deductions by individuals with respect to a dwelling unit that is used by the taxpayer during the year as a "residence". The provision does not apply to deductions for amounts allowable without regard to the ta

Section 7491(a) does not apply because petitioner did not satisfy the requirements of that section.

7491(a), concerning the burden of proof, is inapplicable because petitioner has not satisfied its requirements.

Petitioners do not argue the applicability of section 7491(a), and the record reflects that section 7491(a) does not apply.

The Court concludes that section 7491(a) is inapplicable.

We also note that section 7491(a), which in certain cases shifts the burden of proof to the Commissioner, does not apply to employment tax determinations.

Petitioner does not argue the applicability of section 7491(a), and the record reflects that section 7491(a) does not apply.

Petitioner does not argue the applicability of section 7491(a), and the record reflects that section 7491(a) does not apply.

Petitioner does not argue the applicability of section 7491(a), and the record reflects that section 7491(a) does not apply.

7491(a) is inapplicable.

7491(a) does not alter the taxpayer’s burden of proof where the taxpayer has not complied with all applicable substantiation requirements, sec. 7491(a) does not apply in this case.

7491(a) does not apply here.

We need not decide who bears the burden of proof.

However, because we decide all issues on the preponderance of the evidence, we need not decide which party bears the burden of proof.

We need not decide the Youngs’ contention in this regard because our findings and analysis do not depend on which party bears the burden of proof.

However, because we decide all issues on the basis of the preponderance of the evidence, we need not decide which party bears the burden of proof.

We need not decide who bears the burden of proof because the parties have provided sufficient evidence to enable us to decide the dis- puted valuation questions by a preponderance of the evidence.

We need not decide the effect of this error as it does not affect our resolution of this case.

Besser, and never asked anyone to create Xong Services on her behalf.35 We are not convinced.

In any event, on the basis of the record before us, we have doubts as to whether petitioners have established that all of the requirements for shifting the burden of proof under that section have been met.

(CCH) 809, 815 (finding, contrary to the taxpayer’s position that “she never received any interest at all on child support debt,” that she had received interest on child support arrearages), aff’d per curiam without published opinion, 3 In view of petitioner’s concession, we need not decide whether petitioner has satisfied the preconditions under section 6201(d) to impose a burden on respondent to produce, in addition to the information return reporting the $7,824 payment, reasonable and probati

Sonntag testified that he took business partners with him to the spa as a “thank you.” We are not convinced, on the basis of our review of the record as a whole, that this was not a personal trip to the spa.

Accordingly, we need not decide whether petitioners have complied with the requirements of section 7491(a)(2), and petitioners retain the burden of proving they are entitled to the Schedule F deductions claimed.

The Court need not decide this issue.

Therefore, we need not decide whether petitioner satisfied the requirements ofsection 7491(a).

Because we decide all factual issues on a preponderance ofthe evi- dence, we need not decide who has the burden ofproof.

435, 440 (1934).8 7Under the circumstances, we need not decide whether Mr.

Because we decide this case on a preponderance ofthe evidence, we need not decide which party has the burden ofproof.

The Court need not decide which party bears the burden ofproofas to factual matters because its decision rests on a preponderance ofthe evidence.

435, 440 (1934).8 7Under the circumstances, we need not decide whether Mr.

We need not decide that issue because we decide this case on the basis ofa preponderance ofthe evidence rather than on an allocation ofthe burden ofproof.

Because we decide all factual issues on a preponderance ofthe evidence, we need not decide who has the burden ofproof.

Because we decide this case on a preponderance ofthe evidence, we need not decide which party has the burden of proof.

Because we decide all factual issues on a preponderance ofthe evidence, we need not decide who has the burden ofproof.

We therefore need not decide whether petitioner satisfied the requirements ofsection 7491(a).

Because we can decide all ofthe issues in these cases without regard to the ultimate allocation ofthe burden ofproofunder section 7491(a)(1), we need not decide whether petitioners satisfied the requirements of section 7491(a)(2).

Because we can decide all ofthe issues in these cases without regard to the ultimate allocation ofthe burden ofproofunder section 7491(a)(1), we need not decide whether petitioners satisfied the requirements of section 7491(a)(2).

Because we decide this case on a preponderance ofthe evidence, we need not decide which party has the burden ofproof.

We therefore need not decide whetherpetitioners satisfied the requirements of section 7491(a).

However, we need not decide whether petitioners satisfy the requirements ofsection 7491(a)(1) and (2) with respect to the remainder ofthe issues in this case because we decide them on the preponderance ofcredible evidence and not on any failure to carry the burden ofproof.

We need not decide whetherthe burden ofproof shifts to the IRS because the relevant facts are stipulated and only a legal issue remains.

We need not decide whetherthe burden of proofshould shift, because we decide this case on a preponderance ofthe evidence--particularlypetitioner's forthright, credible, and largely undisputed testimony--withoutreference to the placement ofthe burden ofproof.

Accordingly, we need not decide whether the general rule ofsection 7491(a)(1) is applicable in this case.

We need not decide whether section 7491(a) imposes the burden ofproofon the IRS.

We therefore need not decide whether petitioners have met the conditions ofsection 7491(a)(2) required to shift the burden ofproofto respondent with respectto those issues.

Furthermore, because the relevant facts are stipulated and only a legal issue remains, we need not decide whether the burden ofproofshifts to respondent.

We therefore need not decide whether petitioners satisfied the requirements ofsec.

Accordingly, we need not decide whetherpetitioners satisfy the requirements of section 7491(a)(1) and (2).

We need not decide whetherthat exception applies because the parties have provided sufficient evidence for us to decide the factual issues in dispute without regard to the burden ofproof.

Consequently, we need not decide whether pursuant to section 7491(a) the burden ofproofshould shift to respondent.

Because we decide this issue on the basis ofthe preponderance ofthe evidence, we need not decide upon which party the burden ofproofrests.

Consequently, we need not decide whether pursuantto section 7491(a) the burden ofproofshould shift to respondent as to this issue.

Because we hold that petitioner was not engaged in an active trade or business during 2006, we need not decide whether petitioner's Schedule C expenses were substantiated.

The issues for decision in this case are legal issues; therefore, the Court need not decide who bears the burden ofproof.

Although petitioner contends that he satisfies the requirements ofsection 7491(a)(2), we need not decide whether the burden ofproofshifts to respondent - 5 - [*5] with respect to factual issues under section 7491(a)(1) because our conclusions herein are based on a preponderance ofthe evidence: See Estate of Bongard v.

In any case, we need not decide whether section 7491(a) applies to 5Ifan employee ofa foreign government executes and files with the Attorney General the waiver under sec.

As we decide thes cases on the preponderance ofthe evidence, we need not decide upon which y the burden rests.

Because we decide on the preponderance ofthe evidence whether petitioners were engaged in the active conduct ofa trade or business during 2006, we need not decide whether section 7491 applies to this issue.

Furthermore, because the relevant facts are stipulated and only a legal issue remains, we need not decide whether the burden ofproofshifts to respondent.

Because we decide this case on the basis of the preponderance ofthè evidence, we need not decide upon which partÿ the burden rests.

Because we decide this issue on the basis ofthe preponderance ofthe evidence, we need not decide upon which party the burden rests.

Petitioner has not alleged that section 7491(a) applies, and the Court need not decide whether the burden should be shifted because the Court decides this case on the record, not on who has the burden of proof.

We need not decide whether sec .

We :herefore need not decide whether petitioner has also mets the conditions of section 7491(a) (2)i required to shift the burden of proof to respondent with respect- to those issues.

We need not decide whether section 7491(a) applies to the material factual issue in these consolidated cases (the viability of Robucci P.C.

In a case where the standard of proof is based on a e preponderance of the evidence, as it is here, the Court may decide the case on the weight of the evidence and need not decide it on an allocation of the burden of proof.

Because we decide this case on the basis of the preponderance .of the evidence, we need not decide upon which party the burden rest s Section 61(a)(3) provides that gross income .

We need not decide whether section 7491(a) applies to this case because we decide the parties' gambling loss dispute on the basis of the record at hand .

We need not decide whether the burden of proof shifts to respondent under section 7491(a) because we decide this case on the basis of the preponderance of the evidence .

Although section 7491(a) may shift the burden of proof to the Commissioner in specified circumstances, we need not decide which party bears the burden of proof because in this case the outcome does not depend on the burden of proof .

However, we need not decide whether decedent's estate has satisfied the .

Petitioner 4 - has not alleged that section 7491(a) applies, but the Court need not decide whether the burden shifted to respondent since the Court's analysis is based on the record before it, not on who bears the burden of proof .

Petitioners have not alleged that section 7491(a) applies, but the Court need not decide whether the'burden shifted to respondent since the Court's analysis is based on the record before it, not on who bears the burden of proof .

We need not decide whether section 7491(a) applies to that issue because we resolve it upon a preponderance of the evidence .

Petitioner has not alleged that -section 7491(a)- applies ; however,--the Court'need not decide whether,t:he burden shifted to respondent since the Court's analysis-is based on the record before it and not on who bears the.burdenwof proof .

Petitioner has not alleged that section 7491(a) applies ; however, the Court need not decide whether the burden shifted to respondent pursuant to section 7491(a) since the Court's analysis is based on the record before it and not on who bears the burden of proof .

But Christiansen did not bequeath any of he r ' We need not decide whether the burden of proof shifts to respondent under section 7491(a) because the case is mostly determined by applying the law to undisputed facts .

Because we decide this case without regard to the burden of proof, we need not decide whether section 7491(a) applies .

Accordingly, we need not decide whether section 7491(a) applies in this case .

We need not decide this issue, however, because our analysis in 2 There is nothing in the record to support respondent’s determination recharacterizing the gross income reported on Schedules C for RBS during the years at issue as reimbursement for expenses from petitioner’s employer, IRS.

Accordingly, the Court need not decide whether section 7491(a)(1) is applicable in this case.

Petitioner has not alleged that section 7491(a) applies ; however, we need not decide whether the burden shifted to respondent pursuant to section 7491 (a) ecause our analysis is based on the record before the Court and not on who bears the burden of proof .

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether section 7491(a) applies in this case .

Accordingly, we need not decide whether section 7491(a) applies in this case .

n - 4 - Accordingly, we need not decide whether section 7491(a) applies in this case .

Accordingly, we need not decide whether the general rule of section 7491(a)(1) is applicable in this case.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether the general rule of section 7491(a)(1) is applicable.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether the general rule of section 7491(a)(1) is applicable.

Accordingly, we need not decide whether the general rule of section 7491(a)(1) is applicable in this case.

We need not decide the point because our findings and analysis in this case do not depend on which party bears the burden of proof.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether the general rule of section 7491(a)(1) is applicable in this case.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether the general rule of sec.

We need not decide that question because our decision on petitioners’ 1997 self-employment tax liability does not depend on the burden of proof.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, the Court need not decide whether section 7491(a)(1) is applicable in this case.

2 We need not decide whether the burden of proof shifts to respondent under sec.

9 We need not decide whether sec.

Accordingly, we need not decide whether section 7491(a)(1) is applicable in this case.

Accordingly, we need not decide whether the general rule of section 7491(a)(1) is applicable in this case.

Accordingly, we need not decide whether the general rule of section 7491(a)(1) is applicable in this case.

Accordingly, we need not decide whether the general rule of section 7491(a)(1) is applicable in this case.

Accordingly, we need not decide whether section 7491(a)(1) is applicable in this case.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, the Court need not decide whether current section 7491(a)(1) is applicable in this case.

Accordingly, we need not decide whether the general rule of sec.

Accordingly, we need not decide whether the general rule of sec.

111, 115 (1933).6 Based on all of the facts and circumstances of this case, we are not convinced that petitioner engaged in his “health, wealth and healing ministry” activity for profit.

We need not decide petitioners’ contention because our findings and analysis do not depend on which party bears the burden of proof.

Accordingly, the Court need not decide whether current sec.

We do not agree that respondent bears the burden ofproof.

We do not agree that respondent bears the burden ofproof.

We disagree with petitionerregarding the consequences ofrespondent's concession.

We disagree with both .of respondent's arguments .

We disagree with petitioner's .argument that the $54,819 is not-taxable to him in .2005 .

However, we cannot agree that those factors, alone or in combination, outweigh the inherently personal nature of Mr.

We disagree with both of petitioner’s arguments.

Although the Code does not define what constitutes a gift for purposes ofsection 2501, transfers subject to the gift tax "are not confined to those only which, being without a valuable consideration, accord with the common law concept ofgifts, but embrace as well sales, exchanges, and other dispositions ofproperty for a consideration to the extent that the value ofthe propertytransferred by the donor exceeds the value in money or money's

Petitioners have not argued or established that section 7491(a) applies, and therefore the burden of proof remains with them.

Any 3 Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Petitioners have not alleged that section 7491(a) applies, nor have they complied with substantiation requirements or maintained adequate records.

Kramarenko received the salary from MUSC, and she does not argue that the burden of proof has shifted pursuant to section 7491(a) or that, for any other reason, she does not bear the burden of proof.

In any event petitioners have not established that the burden of proof has shifted to respondent pursuant to section 7491(a).

Petitioner has not argued nor established that section 7491(a) applies, and therefore the burden of proof remains with him.

Petitioners have not alleged that section 7491(a) applies and did not comply with substantiation requirements or maintain adequate records.

Section 7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the taxpayer’s liability for any tax imposed by subtitle A or B and meets other prerequisites, the Commissioner shall have the burden of proof with respect to that is

Petitioners have not argued or established that section 7491(a) applies, and therefore the burden of proof remains with them.

Under certain circumstances the burden of proof as to factual matters shifts to the Commissioner pursuant to section 7491(a).

Section 7491(a) provides an exception that shifts the burden of proof to the Commissioner as to any factual issue relevant to the taxpayer’s tax liability if the taxpayer introduces credible evidence with respect to the issue and meets certain other conditions.

Petitioner has not argued or established that section 7491(a) applies, and therefore the burden of proof remains with him.

11 [*11] Petitioners allege that the burden of proof should shift to respondent pursuant to section 7491(a) because they have “introduced credible evidence concerning [their] profit motive.” Under section 7491(a), if the taxpayer produces credible evidence with respect to any factual issue relevant to ascertaining his or her federal income tax liability and meets certain other requirements, the burden of

In any event petitioner has not established that the burden of proof has shifted to respondent pursuant to section 7491(a).

Section 7491(a) provides that the burden of proof may shift to the Commissioner on a factual issue if (among other requirements) the taxpayer “introduces credible evidence with respect to [that] issue” and “has maintained all records required under this title.” See § 7491(a)(1), (2)(B).

6 Section 7491(a) provides that the burden of proof may shift to the Commissioner if the taxpayer “introduces credible evidence with respect to any [relevant] factual issue” and satisfies three additional conditions.

Section 7491(a) provides that the burden of proof may shift to the Commissioner if the taxpayer “intro- duces credible evidence with respect to [a relevant] factual issue.” But that section applies only if the taxpayer (among other things) “intro- duces credible evidence” and “has maintained all records required under this

Whether a payment qualifies for a deduction under section 162(a) is a factual issue which must be decided on the basis of all relevant facts and 5 Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

In an exception to the general rule that the taxpayer bears the burden of proof, section 7491(a) provides that the burden of proof shifts to the IRS with respect to an issue related to income tax liability if the following conditions are met: (1) the taxpayer introduced credible evidence with respect to that factual issue relevant to ascertaining the taxpayer’s tax liability, (2) the taxpayer complied

2015-227, at *11 (“A taxpayer seeking to shift the burden of proof pursuant to section 7491(a)(1) has the burden of showing that he has satisfied the section 7491(a)(2) preconditions.”).

The Estate does not contend that section 7491(a) applies, and the record does not otherwise indicate that it should.

The Pascuccis do not argue that the burden of proof has shifted pursuant to section 7491(a).

A qualified first-time homebuyer may except up to a lifetime limit of $10,000 from the 10% additional tax on early distributions from an individual retirement plan if he had no present ownership interest in 3 Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

5 Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

10 Section 7491(a) provides that in certain circumstances the burden of proof with respect to factual matters may shift to the Commissioner.

Petitioner also argues that the burden of proof has shifted to respondent pursuant to section 7491(a) concerning all factual issues underlying his deficiency determinations, including the determination premised on the unreported IRA distributions.

Section 7491(a) provides an exception that shifts the burden of proof to the Commissioner as to any factual issue relevant to the taxpayer’s tax liability if the taxpayer introduces credible evidence with respect to the issue and meets certain other conditions.

Tibin has not argued or established that the burden of proof has shifted to respondent pursuant to section 7491(a), and therefore the burden of proof largely remains with Mr.

The taxpayer bears the burden of proving that expenses were of 3 Pursuant to section 7491(a), the burden of proof may shift to the Commissioner if the taxpayer introduces credible evidence with respect to any factual issues relevant to ascertaining the taxpayer’s tax liability.

1993-398.7 7 Section 7491(a) provides that the burden of proof may shift to the Commissioner if the taxpayer “introduces credible evidence with respect to any [relevant] factual issue” and satisfies three additional conditions.

Petitioners have not argued or established that section 7491(a) applies, and therefore the burden of proof remains with them.

Section 7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issues relevant to ascertaining the liability of the taxpayer for any tax imposed by subtitle A or B of the Code and meets other prerequisites, the burden of proof shall shift to the Commissioner w

The Estate does not contend that section 7491(a) applies, so we do not consider it here.

Davison is entitled to relief from joint and several liability pursuant to section 6015.16 Finally, petitioners assert that the burden of proof should shift to respondent pursuant to section 7491(a).

Petitioners have not argued that section 7491(a) applies, and therefore, the burden of proof remains with them.

15 Section 7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability for tax and meets other prerequisites, the burden of proof rests on the Commissioner as to that factual issue.

Because petitioners have not alleged or shown that section 7491(a) applies, the burden of proof remains on them.

To prove entitlement to deduct an expense, the taxpayer must 10 Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Petitioner has neither argued that section 7491(a) applies nor established that its requirements have been met.

111, 115 (1933).3 Deductions are a matter of 3 Pursuant to section 7491(a), the burden of proof may shift to respondent if petitioners introduce credible evidence with respect to any factual issues relevant to ascertaining petitioners’ tax liability.

816, 842 (1987).7 7 Although petitioners contend in their opening brief that the burden of proof should shift to respondent pursuant to section 7491(a), as more fully discussed hereinafter, they have failed to introduce any “credible evidence” as provided in that section with respect to any factual issue underlying their capital loss claim.

Section 7491(a) provides an exception that shifts the burden of proof to the Commissioner as to any factual issue relevant to the taxpayer’s tax liability if the taxpayer introduces credible evidence with respect to the issue and meets certain other conditions.

Alimony Deductions Section 215(a) generally allows a deduction for the payment of alimony as defined in section 71(b),4 which provides: (1) In general.—The term “alimony or separate maintenance payment” means any payment in cash if— 3 Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Section 7491(a) provides that the burden of proof may shift to respondent if the taxpayer “introduces credible evidence with respect to any [relevant] factual issue” and satisfies three additional conditions.

Because petitioners have not alleged or shown that section 7491(a) applies, the burden of proof remains on them.

3 Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Petitioners have not argued that section 7491(a) applies, and therefore the burden of proof remains with them.

When a 4 Pursuant to section 7491(a), the burden of proof may shift to the Commissioner if the taxpayer introduces credible evidence with respect to any factual issues relevant to ascertaining the taxpayer’s tax liability.

Valentine does not contend that the burden of proof should shift to the Commissioner pursuant to section 7491(a), and there is no support in the record for such a contention.

10 Section 7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability for tax and meets other prerequisites, the burden of proof rests on the Commissioner as to that factual issue.

The term “fair market value” is defined as “the price at which the property would change hands between a willing buyer and a willing 4Pursuant to section 7491(a), the burden of proof may shift to the Commissioner if the taxpayer introduces credible evidence with respect to any factual issues relevant to ascertaining the taxpayer’s tax liability.

3 Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

2 Pursuant to section 7491(a), the burden of proof may shift to the Commissioner if the taxpayer introduces credible evidence with respect to any factual issues relevant to ascertaining the taxpayer’s tax liability.

One exclusion from gross income is found in section 104(a)(2), which provides that gross income does not include “the amount of any damages (other than punitive damages) received (whether by suit or 5 Section 7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability for tax and meets other prerequisites, the burden of proof rests on the Commissioner as to that factual issue.

Petitioner does not contend, and respondent has not conceded, that the burden of proof has shifted to respondent pursuant to section 7491(a).

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Pursuant to section 7491(a), the burden of proof may shift to the Commissioner with respect to factual matters if the taxpayer meets certain requirements.

Section 7491(a) provides that the burden of proof may shift to respondent if the taxpayer “introduces cred- ible evidence with respect to [a relevant] factual issue” and satisfies three additional conditions.

6 Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

4 Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Petitioner disputes 5 Section 7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability for tax and meets other prerequisites, the burden of proof rests on the Commissioner as to that factual issue.

However, under section 170(f)(3)(B)(iii), a deduction for a 6 Petitioners do not contend, and the Court does not find, that the burden of proof has shifted pursuant to section 7491(a) on any of the matters before us.

Section 7491(a) provides that the burden of proof may shift to respondent if the taxpayer “introduces cred- ible evidence with respect to [a relevant] factual issue” and satisfies three additional conditions.

8 Section 7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability for tax and meets other prerequisites, the burden of proof rests on the Commissioner as to that factual issue.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability of the taxpayer for any tax imposed by subtit.

The Monroes have not argued that section 7491(a) applies, nor have they established that its requirements are met.

- 6 - Petitioner contends that he has satisfied the requirements of section 7491(a) and therefore the burden of proof as to all factual issues affecting the deficiency in tax for the year in issue should shift to respondent.4 Section 7491(a) requires petitioner to introduce credible evidence with respect to each issue for which he seeks to shift the burden of proof.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

We hold that the burden of proof remains with petitioners.

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability of the taxpayer for any tax imposed by subtit.

Petitioner does not allege, nor has she proven, that the burden of proof should shift to respondent pursuant to section 7491(a), and petitioner bears the burden of proof as to all issues remaining in dispute.

- 7 - neither argued that section 7491(a) applies nor established that its requirements are met.

Petitioner has not argued that section 7491(a) applies and has not shown that he meets its requirements to shift the burden of proof; therefore, the burden remains on him.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Because petitioners have not alleged or shown that section 7491(a) applies, the burden of proof remains on them.

Section 7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability for tax and meets other prerequisites, the burden of proof rests on the Commissioner as to that factual issue.

We hold that the burden of proof remains with petitioners.

Under certain circumstances the burden ofproofas to factual matters shifts to the Commissioner pursuant to section 7491(a).

Section 7491(a) provides that ifa taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining her liability for any tax imposed by subtitle A or B, the Commissioner will have the burden ofproofwith respect to that issue.

Shifting the burden ofproof Section 7491(a) provides an exception that shifts the burden ofproofto the Commissioner as to any factual issue relevant to a taxpayer's liability for income tax if: (1) the taxpayer introduces credible evidence with respect to the issue and (2) the taxpayerhas satisfied certain other conditions, including that he has comp

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

7491(a) applies nor established her compliance with its requirements.

Petitioners allege that the burden ofproofshould shift to respondent pursuant to section 7491(a) because they have provided "extensive, comprehensive, and corroborating evidence from witnesses, testimony and exhibits which consisted ofover 3,000 pages, 135 exhibits, and a 10 hour trial" to substantiate that the losses from Joshua Plaza and Conroe Plaza are nonpassive.

Under certain circumstances the burden ofproofas to factual matters shifts to the Commissioner pursuant to section 7491(a).

Because petitioner has not alleged or shown that section 7491(a) applies, the burden of proofremains on him.

We hold that the burden does not shift to the IRS as to any factual issue.

Section 7491(a) provides an exception that shifts the burden ofproofto the Commissioner as to any factual issue relevant to the taxpayers' liability ifthey -31- [*31] provide credible evidence with respect to that issue and also substantiate the item, maintain records, and cooperate with the Commissioner's reasonable requ

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtit.

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtit.

7491(a) provides that in certain circumstances the burden ofproof with respect to factual matters may shift to the Commissioner.

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtit.

Section 7491(a) provides circumstances in which that burden may shift, but the Cuthbertsons do not invoke that provision.

In order to shift the burden as to any relevant factual issue the taxpayermust comply with all substantiation and recordkeeping requirements and cooperate with all reasonable requests by the Commissioner for witnesses, information, documents, meetings, and interviews, pursuant to section 7491(a)(2).

Petitioner does not contend that section 7491(a) applies, nor has he introduced evidence to prove he meets the requirements ofsection 7491(a)(2).

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtit.

Petitioners have not argued that section 7491(a) applies nor established that its requirements are met.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

7491(a) applies to shift the burden ofproofto respondent.

7491(a) provides that if, in any Court proceeding, "a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtitle A or B" and meets other prerequisites, the Commissioner shall have the burden ofproof with respect to th

Under certain circumstances the burden ofproofas to factual matters may shift to the Commissioner pursuant to section 7491(a).

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Simpson have neither argued that section 7491(a) applies nor established that its requirements are met.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

7491(a) provides that in certain circumstances the burden ofproof with respect to factual matters may shift to the Commissioner.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Section 7491(a) provides an exception to this general rule.

7491(a) provides that in certain circumstances the burden ofproof with respect to factual matters may shift to the Commissioner.

7491(a) applies nor established his compliance with its requirements.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Petitioners have not argued that section 7491(a) applies and have not shown that they meet the requirements to shift the burden of proof.

Although section 7491(a) provides for shifting the burden ofproof, this case is decided on the preponderance ofthe evidence and is not affected by the burden ofproofor section 7491(a).

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Petitioners have not argued that section 7491(a) applies and have not shown that they meet the requirements to shift the burden of proof.

-27- [*27] Section 7491(a) provides an exception that shifts the burden ofproofto the Commissioner as to any factual issue relevant to a taxpayer's liability ifthe taxpayerprovides credible evidence with respect to that issue and also substantiates the item, maintains records, and cooperates with the Commissioner's reasonable request

Petitioners have not argued that section 7491(a) applies and have not shown that they meet the requirements to shift the burden of proof.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability for tax and meets other prerequisites, the burden ofproof shifts to the Commissioner as to that factual issue.

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtit.

Petitioner has not asserted that section 7491(a) applies in this case.

In order to shift the burden the taxpayermust comply with all substantiation and recordkeeping requirements and cooperate with all reasonable requests by the Commissioner for witnesses, information, documents, meetings, and interviews, pursuant to section 7491(a)(2).

Petitioners have not argued that section 7491(a) applies and have not shown that they meet the requirements to shift the burden of proof.

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtit.

Under certain circumstances the burden ofproofas to factual matters regarding the determination ofa deficiency may shift to the Commissioner pursuant to section 7491(a).

Petitioners have not argued that section 7491(a) applies and have not shown that they meet the requirements to shift the burden of proof.

7491(a) provides that if, in any court proceeding, a taxpayer intro- duces credible evidence with respect to any factual issues relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtit.

Petitioners have not argued that section 7491(a) applies and have not shown that they meet the requirements to shift the burden of proof.

Petitioner does not contend, and respondent has not conceded, that the burden ofproofhas shifted pursuant to section 7491(a).

Under certain circumstances the burden ofproofas to factual matters regarding the determination ofa deficiency may shift to the Commissioner pursuant to section 7491(a).

Petitioners allege that the burden ofproofshould shift to respondent pursuant to section 7491(a) because they have provided credible evidence to - 6 - [*6] substantiate their claimed loss deductions.

Petitioners have not argued that section 7491(a) applies and have not shown that they meet the requirements to shift the burden of proof.

Petitioners have not argued that section 7491(a) applies and have not shown that they meet the requirements to shift the burden of proof.

Petitioners have not argued that section 7491(a) applies and have not shown that they meet the requirements to shift the burden of proof.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

7491(a) provides that if, in any Court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtit.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

In order to shift the burden the taxpayermust comply with all substantiation and recordkeeping requirements and cooperate with all reasonable requests by the Commissioner for witnesses, information, documents, meetings, and interviews, pursuant to section 7491(a)(2).

Petitioners have not argued that section 7491(a) applies and have not shown that they meet the requirements to shift the burden of proof.

Petitioners have not argued that section 7491(a) applies and have not shown that they meet the requirements to shift the burden of proof.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Petitioners have not argued that section 7491(a) applies 5Petitioners signed two Forms 872, Consent to Extend the Time to Assess Tax, for 2009.

Petitioner does not contend that the burden ofproofshould shift to respondent pursuant to section 7491(a).

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Therefore we hold that petitioner has not met the requirements ofsection 7491 to shift the burden ofproofto respondent.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Petitioner does not contend, and the record does not suggest, that the burden ofproofshould shift to respondent pursuant to section 7491(a).

Petitioners do not contend that section 7491(a) applies, and they have not introduced evidence to prove they meet the requirements ofsection 7491(a)(2).

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

7491(a) applies herein, nor did he show that he met its requirements for shifting the burden ofproof.

Petitioners have neither argued that section 7491(a) applies nor established that its requirements are met.

Petitioners have not argued that section 7491(a) applies nor established that its requirements are met.

Given the demonstrated unreliability ofthese documents, we hold that respondent was prejudiced by petitioners' failure to comply with the 14-day rule.

111, 115 (1933).4 Section 7491(a) provides that if, in any court proceeding, a 3 The record does not specify why there was a five-year gap between the car theft in 2008 and the release ofindebtedness in 2013.

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtit.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Pursuant to section 7491(a), the burden ofproofon factual issues that affect the taxpayer's tax - 8 - liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue".

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

4(...continued) that section 7491(a) applies nor established their compliance with its requirements.

Although petitioners do not assert that section 7491(a) applies, the facts that are relevant to the disposition ofthis case are not in dispute.

Therefore, we hold that the Commissioner's inability to cross-examine Mr.

Under certain circumstances the burden ofproofas to factual matters may shift to the Commissioner pursuant to section 7491(a).

Although petitioners have not asserted that section 7491(a) applies, we find that the facts that are relevant to the disposition ofthis case are not in dispute.

Pursuant to section 7491(a)(1), the burden ofproofas to factual matters may shift from the taxpayerto the Commissioner under certain circumstances.

Under certain circumstances the burden ofproofas to factual matters may shift to the Commissioner pursuant to section 7491(a).

Petitioners do not contend that the burden ofproofshould shift pursuant to section 7491(a), and we conclude that the burden ofproofhas not shifted to respondent.

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtit.

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtit.

7491(a) applies herein, nor do they show that they met its requirements for shifting the burden ofproof.

- 5 - [*5] Under certain circumstances the burden ofproofas to factual matters may shift to the Commissioner pursuant to section 7491(a).

Pursuant to section 7491(a), the burden ofproofon factual issues may shift to the Commissioner where the taxpayer complies with certain requirements.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Respondent filed a response on October 13, 2015.2° The partnerships argue that the burden ofproofin these cases should be shifted to respondent pursuant to section 7491(a).

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Under certain circumstances the burden ofproofas to factual matters may shift to the Commissioner pursuant to section 7491(a).

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with the requirements ofsection 7491(a)(2)(A) and (B) to substantiate items, maintain records, and cooperate fully with respondent's reasonable requests.

Pursuant to section 7491(a), the burden ofproofon factual issues may shift to the Commissioner where the taxpayer complies with certain requirements.

The legislative history of section 7491(a) provides in pertinent part: Credible evidence is the quality ofevidence which, after critical analysis, the court would find sufficient upon which to base a decision on the issue ifno contrary evidence were submitted (without regard to thejudicial presumption ofIRS correctness).

Under certain circumstances the burden ofproofas to factual matters may shift to the Commissioner pursuant to section 7491(a).

Respondent filed a response on October 13, 2015.2° The partnerships argue that the burden ofproofin these cases should be shifted to respondent pursuant to section 7491(a).

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with the requirements ofsection 7491(a)(2)(A) and (B) to substantiate items, maintain records, and cooperate fully with respondent's reasonable requests.

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with the requirements ofsection 7491(a)(2)(A) and (B) to substantiate items, maintain records, and cooperate fully with respondent's reasonable requests.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Although petitioner has not alleged that section 7491(a) applies, the facts material to the disposition ofthis case are not in dispute.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Under certain circumstances the burden ofproofas to factual matters may shift to the Commissioner pursuant to section 7491(a).

Petitioners did not introduce credible evidence that would, pursuant to section 7491(a), shift the burden ofproofto respondent.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

7491(a) applies herein, nor did he show that he met its requirements for shifting the burden ofproof.

Respondent filed a response on October 13, 2015.2° The partnerships argue that the burden ofproofin these cases should be shifted to respondent pursuant to section 7491(a).

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Petitioners did not argue that section 7491(a) applies herein, nor did they show - 5 - that they meet its requirements to shift the burden ofproof.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Under certain circumstances the burden ofproofas to factual matters may shift to the Commissioner pursuant to section 7491(a).

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Petitioner has not argued that section 7491(a) applies and has not shown that it meets the requirements to shift the burden ofproof; therefore, the burden ofproofremains on petitioner.

Petitioner has not argued that section 7491(a) applies, and therefore the burden ofproofremains with him.

Under certain circumstances the burden ofproofas to factual matters may shift to the Commissioner pursuant to section 7491(a).

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtit.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Under certain circumstances the burden ofproofas to factual matters may shift to the Commissioner pursuant to section 7491(a).

7491(a) provides that the burden ofproof with respect to factual matters may shift to the Commissioner.

A taxpayer seeking to shift the burden ofproofpursuant to section 7491(a)(1) has the burden ofshowing that he has satisfied the section 7491(a)(2) preconditions.

Petitioner has not asserted, nor do we find, that the burden ofproofhas shifted to respondent pursuant to section 7491(a).

Pursuant to section 7491(a), the burden of proofmay shift to the Commissioner with respect to factual matters ifthe taxpayer meets certain requirements.

Burden ofProof As a preliminary matter, we consider petitioners' contention that the burden ofproofhas shifted to respondent pursuant to section 7491(a).

Burden ofProof As a preliminary matter, we consider petitioners' contention that the burden ofproofhas shifted to respondent pursuant to section 7491(a).

Pursuant to section 7491(a)(1), the burden ofproofwith respect to relevant facthal issues may shift to the Commissioner.

Petitioners have not argued that section 7491(a) applies and have not shown that they meet the requirements to shift the burden ofproof; therefore, the burden of proofremains with petitioners.

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with its requirements.

Pursuant to section 7491(a), the burden ofproofas to factual matters - 28 - [*28] shifts to the Commissioner under certain circumstances.

A taxpayer seeking to shift the burden ofproofpursuant to section 7491(a)(1) has the burden ofshowing that he has satisfied the section 7491(a)(2) preconditions.

7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtit.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Burden ofProof As a preliminary matter, we consider petitioners' contention that the burden ofproofhas shifted to respondent pursuant to section 7491(a).

Under certain circumstances the burden ofproofas to factual matters may shift to the Commissioner pursuant to section 7491(a).

Pursuant to section 7491(a), the burden ofproofmay shift to the Commissioner with respect to factual matters if the taxpayermeets certain requirements.

Pursuant to section 7491(a)(1), the burden ofproofmay shift to the Commissioner ¹°The request for admissions labeled the proceeds an "insurance settlement", but the parties later identified the proceeds in their briefs as proceeds from a settlement with BOA.

Petitioner has not asserted, nor do we find, that the burden ofproofhas shifted to respondent pursuant to section 7491(a).

Petitioner asserts that the burden ofproofshould shift to respondent pursuant to section 7491(a).

Burden ofProof As a preliminary matter, we consider petitioners' contention that the burden ofproofhas shifted to respondent pursuant to section 7491(a).

We hold it should not; (2) whether Twin City's payments totaling $371,892 incurred on the Schanks' behalffor the construction oftheir house and a barn, payment of personal credit card bills, and purchase ofa 2009 Can-Am Spyder Roadster (Spyder) should be characterized as compensation under section 162(a)(1

Thus the issues remaining for decision are: (1) whether the burden of proofshifted from petitioners to respondent pursuant to section 7491(a); (2) whether petitioners are entitled to depreciation and section 179 expense deductions greater than respondent allowed for the business use by Jefferson Cartwright (petitioner) ofa Navigator Rambler Motor Home (Navigator) for the tax years 2008 and 2009; and (3) whether petitioners are liable for

Under certain circumstances the burden ofproofas to factual matters may shift to the Commissioner pursuant to section 7491(a).

Petitioner has not alleged that section 7491(a) applies nor established her compliance with the substantiation and recordkeeping requirements.

Burden ofProof As a preliminary matter, we consider petitioners' contention that the burden ofproofhas shifted to respondent pursuant to section 7491(a).

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Petitioners have not argued that section 7491(a) applies and have not shown that they meet the requirements to shift the burden ofproof; therefore, the burden ofproofremains with petitioners.

Pursuant to section 7491(a), the - 5 - burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

We hold it should not; (2) whether Twin City's payments totaling $371,892 incurred on the Schanks' behalffor the construction oftheir house and a barn, payment of personal credit card bills, and purchase ofa 2009 Can-Am Spyder Roadster (Spyder) should be characterized as compensation under section 162(a)(1

-5- Petitioner does not contend that the burden ofproofshould shift to respondent pursuant to section 7491(a).

A taxpayer seeking to shift the burden ofproofpursuant to section 7491(a)(1) has the burden ofshowing that he has satisfied the section 7491(a)(2) preconditions.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissionerunder certain circumstances.

Burden ofProof As a preliminary matter, we consider petitioners' contention that the burden ofproofhas shifted to respondent pursuant to section 7491(a).

Under certain cigcumstances the burden ofproofas to factual matters shifts to the Commissionerpursuant to section 7491(a).

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Pursuant to section 7491(a), the burden ofproofmay shift to the Commissioner with respect to factual matters if the taxpayermeets certain requirements.

Section 7491(a) provides an exceptionthat can shift the burden ofproofto the Commissioner ifthe taxpayer introduces credible evidence regarding relevant factual issues and has: (1) complied with all relevant substantiation requirements; (2) complied with all relevant recordkeeping requirements; and (3) cooperated with reas

Because petitionerhas not alleged or shownthat section 7491(a) applies, the burden ofproofremains on him.

Section 7491(a) provides that the burden ofproofmay shift to the Commissioner, however, as to any factual issue relevant to a taxpayer's liability for tax ifthe taxpayer (1) introduces credible evidence with respect to that issue and (2) satisfies certain other conditions, including substantiation ofany item and cooperatio

Petitioner has neither alleged that section 7491(a) applies nor has he established his compliance with its requirements.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Participating partners have not argued that section 7491(a) applies nor established their compliance with its requirements.

Under certain circumstances, the burden ofproofas to factual matters may shift pursuant to section 7491(a) from the taxpayerto the Commissioner, but only ifthe taxpayer introduces credible evidence regarding a factual matter affecting liability and only ifthe substantiation requirements are met, required records are maintained, and the taxpayer cooperates with the Internal Revenue Service's (IRS) reason

OPINION Burden ofProof As a preliminary matter, we consider petitioners' contentionthat the burden ofproofhas shifted to respondent pursuant to section 7491(a).

Petitioners have not argued that section 7491(a) applies, and therefore the burden ofproofremains on them.

7491(a) provides an exception to the general rule that the taxpayerbears the burden ofproof.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Petitioners did not assert that section 7491(a) applies.

Petitioners did not allege that section 7491(a) applies.

Section 7491(a) provides thatthe burden ofproofmay shift to the Commissioner, however, as to any factual issue relevant to a taxpayer's liability for tax ifthe taxpayer (1) introduces credible evidence with respect to that 3Given that petitioners challenge respondent's determination ofunreported income, and for the sake of

7491(a) applies to shift the burden ofproofto respondentwith respect to any factual issue.

Because petitionerhas not alleged or shown that section 7491(a) applies, the burden ofproofremains on petitioner.

Petitioners did not allege that section 7491(a) applies.

Petitioners have not claimed, and the record does not establish, that section 7491(a) applies to shift the burden ofproof to respondent as to any relevant factual issue.

Therefore, we hold that the burden ofproofdoes not shift to respondent.

Section 7491(a) provides that the burden ofproofmay shift to the Commissioner, however, as to any factual issue relevant to a taxpayer's liability for tax ifthe taxpayer (1) introduces credible evidence with respect to that issue, and (2) satisfies certain other conditions, including substantiation ofany item and cooperati

Petitionerhas neither alleged that section 7491(a) applies nor established her compliance with the requirements ofsection 7491(a)(2)(A) and (B) to substantiate items, maintain records, and cooperate fully with respondent's reasonable requests.

Smith has not contended that the burden ofproofhas shifted pursuant to section 7491(a), and the record shows no basis for such a contention.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Petitioners have not claimed and the record does not establish that section 7491(a) applies to shift the burden ofproofto respondent as to any relevant factual issue.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissionerunder certain circumstances.

7491(a) applies, and it has not introduced evidence to prove it satisfied the requirements ofsec.

For these reasons, we hold that Hoang had capital gains of $14,857,461 as that amount is calculated in the notice ofdeficiency.

Petitioners do not argue that the burden ofproofshifts to respondent pursuant to section 7491(a) for any other issue or year, nor have they shown that the threshold requirements ofsection 7491(a) have been met for any ofthe other determinations at issue.

Petitioners have indirectly argued that section 7491(a) applies in this case by stating in their pretrial memorandum that one issue is "Whether the Respondent met its burden ofproof", citing Higbee v.

- 8 - [*8] Section 7491(a) provides that if, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the taxpayer's proper tax liability, and the taxpayerhas complied with all substantiation requirements, maintained all records, and cooperated with all reasonable req

Petitioners have not alleged that section 7491(a) applies or established their compliance with its requirements.

Petitioner's counsel did not askthe Court to shift the burden at the end oftrial and did not otherwise allege that section 7491(a) applies, nor did petitioner establish her compliance with the substantiation and recordkeeping requirements.

OPINION In general, the Commissioner's determinations set forth in a notice of deficiency are presumed correct, and the taxpayerbears the burden ofproving that these determinations are in error.5 Pursuant to section 7491(a), the burden of proofas to factual matters shifts to the Commissioner under certain circumstances.

Pursuant to section 7491(a), the burden ofproofmay shift to the Commissioner ifthe taxpayer produces credible evidence with respect to any relevant factual issue and meets other requirements.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Section 7491(a) provides that the burden ofproofmay shift to the Commissioner as to any factual issue relevant to a taxpayer's liability for tax if (1) the taxpayer introduces credible evidence with respect to that issue; and (2) the taxpayer satisfies certain other conditions, including substantiation ofany item and coope

However, pursuant to section 7491(a)(1), the burden ofproofon factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue." The burden will shift only ifthe taxpayer has, inter alia, complied with substantiation requirement

In order to shift the burden, the taxpayer must comply with all substantiation and recordkeeping requirements and cooperate with all reasonable requests by the Commissioner for witnesses, information, documents, meetings, and interviews, pursuant to section 7491(a)(2).

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with its requirements.

Pursuant to section 7491(a), the taxpayer may shift the burden ofproofto the Commissioner in certain circumstances.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

'Petitioner argues that respondent bears the burden ofproofpursuant to section 7491(a) with respect to relevant factual issues.

In order to shift the burden, the taxpayer must comply with all substantiation and recordkeeping requirements and cooperate with all reasonable requests by the Commissioner for witnesses, information, documents, meetings, and interviews, pursuant to section 7491(a)(2).

Pursuant to section 7491(a), the burden ofproofmay shift to the Commissioner ifthe taxpayer produces credible evidence with respect to any relevant factual issue and meets other requirements.

However, pursuant to section 7491(a), the burden ofproofon factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue." Petitioners have not established that they meet the requirements under section - 6 - [*6] 7491(a)(1)

Under certain circumstances the burden ofproofas to factual matters shifts to the Commissioner pursuant to section 7491(a).

Frontier contends section 7491(a) applies to shift the burden of proof, but the record is not clear on whet er Frontier meets the requirements of section 7491(a)(2)(C).

Pursuant to section 7491(a), the burden ofproofmay be shifted to the IRS.

However, the burden of proofmay shift to the Commissioner pursuant to section 7491(a) ifthe taxpayer produces credible evidence to support the deduction or position and demonstrates that the requirements ofsection 7491(a)(2) have been met.

Pursuant to section 7491(a), the burden ofproofmay shift to the .

Petitioners do not argue that the burden ofproofshifts to respondent pursuant to section 7491(a) for any other issue or year, nor have they shown that the threshold requirements ofsection 7491(a) have been met for any ofthe other determinations at issue.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissionerunder certain circumstances.

Pursuant to section 7491(a), the burden ofproofmay shift to the Commissioner ifthe taxpayerproduces credible evidence with respect to any relevant factual issue and meets other requirements.

Pursuant to section 7491(a), the burden ofproofmay shift to the Commissioner ifthe taxpayer produces credible evidence with respect to any relevant factual issue and meets other requirements.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under cert in circumstances.

- 5 - Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

In order to shift the burden the taxpayer must comply with all substantiation and - 10 - [*10] recordkeeping requirements and cooperate with all reasonable requests by the Commissioner for witnesses, information, documents, meetings, and interviews, pursuant to section 7491(a)(2).

In order to shift the burden the taxpayermust comply with all substantiation and recordkeeping requirements and cooperate with all reasonable requests by the Commissioner for witnesses, information, documents, meetings, and interviews, pursuant to section 7491(a)(2).

However, pursuant to section 7491(a)(1), the burden of proofon factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue." The burden will shift only ifthe taxpayerhas, inter alia, - 9 - [*9] complied with substantiation

The facts deemed established show that the Tinneys failed to report $101,963 in gross receipts.2 We hold that the Tinneys failed to report $101,963 in gross receipts for Travis Tinney's construction business.

7491(a) applies in this case.

Petitioners do not argue that the burden ofproofshifts to respondent pursuant to section 7491(a) for any other issue or year, nor have they shown that the threshold requirements ofsection 7491(a) have been met for any ofthe other determinations at issue.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissionerunder certain circumstances.

However, pursuant to section 7491(a)(1), the burden ofproofas to a factual issue that affects the taxpayer's tax liability may be shifted to the Commissioner.

Petitioners do not argue that the burden ofproofshifts to respondent pursuant to section 7491(a), nor have they shown that the threshold requirements ofsection 7491(a) have been met.

Sasser's testimony, they have presented credible evidence ofvalue, thereby shifting the burden ofproofto respondent pursuant to section 7491(a).

Petitioners have not argued or established that section 7491(a) applies, and therefore the burden ofproofremains on petitioners.

Pursuant to section 7491(a)(1) the taxpayer may shift the burden ofproofto the Commissioner ifthe taxpayer complies with the relevant substantiation requirements in the Internal Revenue Code, maintains all required records, and cooperates with the Commissioner with respect to witnesses, information, documents, meetings, and i

However, pursuant to section 7491(a)(1), the burden of proofas to a factual issue that affects the taxpayer's tax liability may be shifted to the Commissioner.

Pursuant to section 7491(a), the burden ofproofmay shift to the Commissioner if the taxpayerproduces credible evidence with respect to any relevant factual issue and meets other requirements.

Petitioners did not allege that section 7491(a) applies.

Petitioner has not argued that section 7491(a) applies in this case, and the record does not support a conclusion that the requirements ofsection 7491(a) have been met.

However, pursuant to section 7491(a), the burden ofproofon factual issues that affect the taxpayer's tax liability may shift to the Commissioner in certain situations.

- 10 - Pursuant to section 7491(a) (1), the burden of proof as to factual matters may shift from the taxpayer to the.Commissioner under certain circumstances.

Pursuant to section 7491(a), the burden of proofas to factual matters shifts to the Commissioner in certain circumstances.

7491(a) applies to shift the burden ofproofto respondent with regard to any factual issue.

Therefore, we hold that the burden ofproofdoes not shift to respondent.

Courts have consistently held that the standard to be applied in section 6651 is one of"ordinary business care and prudence", as required by section 301.6651-1(c)(1), Proceed.

Petitioner has not alleged that section 7491(a) applies and has not established that she is in compliance with the substantiation and recordkeeping requirements ofthat section.

However, pursuant to section 7491(a)(1), the burden ofproofas to a factual issue that affects the taxpayer's tax liability may be shifted to the Commissioner.

Petitioner does not argue that the burden ofproofshifts to respondent pursuant to section 7491(a), nor has she shown that the threshold requirements ofsection 7491(a) have been met for any ofthe determinations at issue.

Alternatively, petitioner contends that respondentbears the burden of proofbecause section 7491(a) applies.

7491(a) applies nor established their compliance with its requirements.

Petitioners do not contend that section 7491(a) applies, and the record does not permit us to conclude that petitioners satisfied the requirements ofsection 7491(a)(2).

OPINION Pursuant to section 7491(a), petitioners have the burden ofproofunless they introduce credible evidence relating to the issue that would shift the burden to respondent.

For the reasons that follow, we hold that petitioners have not established that they are entitled to the business expense deductions claimed.

Section 7491(a) provides an exception that shifts the burden ofproofto the Commissioner.

Petitioner has neither alleged that section 7491(a) applies nor established her compliance with the substantiation and;recordkeepingrequirements.

However, pursuant to section 7491(a), in certain circumstances the burden ofproofon factual issues that affect the taxpayer's tax liability "for any tax imposed by subtitle A or B" m y shift to the Commissioner.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner in certain circumstánces.

- 12 - [*12] Section 7491(a) provides an exception that can shift the burden ofproofto the Commissioner.

HP has not alleged that section 7491(a) applies or established its compliance with its requirements.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

We hold that section 7491(a)(1) does not shift the burd(:n ofproofto respondent.

Discussion As a preliminary matter, we consider petitioners' contention that the burden ofproofhas shifted to respondent pursuant to section 7491(a).

Discussion We consider as apreliminary matter petitioner's contentionthat the burden ofproofhas shifted to respondent pursuant to section 7491(a).

7491(a) applies, nor has he introduced the requisite evidence to invoke that section.

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

pursuant to section 7491(a)(2).

Petitioners have not argued that section 7491(a) applies in this case and therefore bear the burden ofproof.

Petitioners do not contend that section 7491(a) applies, and the sThe term "Secretary" means "the Secretary of the Treasury or his delegate", sec.

Therefore, we hold that the burden ofproofdoes not slïift to respondent.

Therefore, we hold that the burden ofproofdoes not shift to respondent.

Petitioners argue, for the first time on brief, that reepondent bears the burden ofproofpursuant to section 7491(a) for the issue ofSiemens' intent with respect to the $100,000 settlement payment.3 Our concltsions, however, are based on a preponderance 3"This Court generally will not consider issues that are raised for the first time on brief, particularly where the belated claim would prejudice a party." Han (c

Pursuant to section 7491(a), the burden of proofas to factual matters shifts to the Commissioner in certain circumstances.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Petitioner did not allege that section 7491(a) applies.

However, pursuant to section 7491(a), the burden ofproofon factual issues that affect the taxpayer's tax liability maybe shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue ." The burden will shift only ifthe taxpayerhas, inter alia, complied with substantiation requirements pu

Petitioner has not argued'that section 7491(a) applies in this case, and the record does not support a conclusion that the requirements ofsection 7491(a) have been met.

With respect to those issues; therefore, the burden cfproofshifts to respondentpursuant to section 7491(a)(1).

Pursuant to section 7491(a), the burden ofproofas to factual matters shifts to the Commissioner under certain circumstances.

Pursuant to section 7491(a), the burden,0fproofas to factual matters shifts to the Commissioner under certain circumstances.

Therefore, we hold that the burden ofproofdoes not shift to respondent.

Petitioners have not argued that section 7491(a) applies, and therefore the burden ofproofremains on them.

Petitioner does not assert that secti n 7491(a) shifts the burden to respondent, and the record does no permit us to conclude that section 7491(a) applies.

- 6 - the Commissioner in certains circumstances.« Petitioners have not, alleged that section 7491(a) applies, nor have they established their compliance with the substantiation and recordkeeping requirements of the Internal Revenue Code.- See sec.

Pursuant to section 7491(a); the burden of proof assto factual matters may shift to the Commissioner under-certain circumstances.

Petitioners do not argue that the burden of proof shifts to respondent pursuant to section 7491(a), nor have they shown that the threshold requirements of section 7491(a) have been met for any of the determinations at issue.

Petitioners do not -argue that the burden of proof shifts to respondent pursuant to section 7491(a), nor have they shown that .the threshold requirements of section 7491(a) have been met.

Pursuant to section 7491(a) (1), the burden of proof as to factual matters may shift from the taxpayer to the Commissioner under certain circumstances.

However, pursuant to section 7491(a) (1), the burden 3Unless otherwise indicated, all section references are to the Internal Revenue Code of 1986 (Code), as amended and in effect for the tax year at issue.

Pursuant to section 7491(a), the-burden of proof as to factual matters shifts to the Commissioner under certain.

Petitioners contend that the burden of proof shifts to respondent pursuant to section 7491(a).

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

However, petitioner does not argue that section 7491(a) applies, and the record does not permit us to conclude that the requirements of section 7491(a) (2) have been satisfied.

7491(a) applies in the instant cases to shift the burden of proof to respondents - 8 - Taxpayers also bear the burden of proving that they have met all requirements to be entitled to-any claimed deductions.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Petitioners contend that pursuant to section 7491(a) the burden has shifted to respondent to prove that petitioner was not a real estate professional.

Pursuant to section 7491(a),i the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Pursuant to section 7491(a) (1), the burden of proof as to factual matters may shift from the taxpayer to the Commissioner under certain circumstances.

6662(a) 2004 $7,965 $645.00 $1,593.00 2005 9,634 940.75 1,923.80 The issues we must decide are: (1) Whether the burden of proof has shifted to respondent pursuant to section 7491(a); (2) whether petitioner husband was an employee or an independent contractor of Temple University; (3) whether petitioners are entitled to deduct business expenses reported on their returns on Schedules C, Profit or Loss From Business; (4) whether petitioners are entitled to deduct employee busines

However, pursuant to section 7491(a) (1), the burden of proof as to a factual issue that affects the taxpayer's tax liability may be shifted.

- 5 - that section 7491(a) applies nor established their compliance with the substantiation and recordkeeping requirements.

Petitioners do not argue that the burden of proof shifts to respondent pursuant to section 7491(a) for any other issue or year, nor have they shown that the threshold requirements of section 7491(a) have been met for any of the other determinations at issue.

Petitioners do not argue that the burden of proof shifts to respondent pursuant to section 7491(a), nor have they shown that the threshold requirements of section 7491(a) have been met for any of the determinations at issue.

We need not address whether section 7491(a) applies because the parties have provided sufficient evidence for us to find that the value of decedent's units as of the valuation date was $32,601,640.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

However, pursuant to section 7491(a) (1), the burden of proof as to a factual issue that - 6 - affects the taxpayer's tax liability may be shifted to the Commissioner.

High has not contended that the burden of proof has -8- shifted pursuant to section 7491(a), and the record shows no basis for such a contention.

7491(a) applies here.

Section 7491(a) requires petitioner to introduce credible evidence with respect to each issue for which he seeks to shift the burden of proof.

500, "Under certain circumstances the burden can shift to respondent with respect to factual disputes pursuant to section 7491(a).

Petitioners have not alleged that section 7491(a) applies, nor did they introduce a sufficiency of evidence to invoke that section; therefore, the burden of proof remains on petitioners.

The estate contends that the burden of proof has shifted to respondent pursuant to section 7491(a).

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certa:.n circumstances.

Pursuant to section 7491(a), the lurden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Second, section 7491(a) provides that the burden of proof as to factual matters may shift to the Commissioner under certain circumstances.

Pursuant to section 7491(a) , the burden of.

I 0 - Petitioner edoesenot/con end that -section 7491(a) applies, nor hássshe establiished,t-hat therrequirements of esection 74914(a) (2) have beensmet .

7491(a) applies in the instant cases to shift the burden of proof to respondents - 8 - Taxpayers also bear the burden of proving that they have met all requirements to be entitled to-any claimed deductions.

Section 6663(b) provides that a determination that any portion of an underpayment is attributable to fraud results in the entire underpayment's being treated as "Under certain circumstances the burden of proof can shift to the Commissioner with respect to factual disputes, pursuant to section 7491(a).

- 18 - OPINION Burden of Proof Petitioners-argue that respondent bears the burden,of proof in this proceeding pursuant to section 7491(a).

Section -7491(a) provides an exception to the general presumption of correctness in that the burden of proof as to factual issues may shift to the Commissioner in limited ·circumstances.

7491(a) provides that under certain circumstances he burden of proof with respect to factual matters shifts to respondent.

Petitioners do not argue that the burden of proof shifts to respondent pursuant to section 7491(a), nor have they shown that the threshold requirements of section 7491(a) have been met for any of the determinations at issue.

h held that a redemption of 75 percent of a corporation's stock qualified as the indirect acquisition of an interest in a trade or business for purposes of section 197 ; and Recovery Group urges that its 6Under certain circumstances the burden can shift to the IRS .with respect: to factual disputes pursuant to section 7491(a) .

Pursuant to section 7491(a), the burden of.

a Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Under certain circumstances, the burden of proof as to factual matters may shift pursuant to section 7491(a) from the taxpayer to the Commissioner, but only if the taxpayer introduces credible evidence regarding a factual matter affecting her liability and only if she has complied with substantiation -31- requirements , has maintained all required records, and has cooperated with the IRS 's reasonable re

8 - Petitioners assert that their_ 2000, 2001 , and 2002 Forms 1040 along with their testimony at trial constitute credible evidence of the nature and amount - of their income for the year s .in issue and argue that the burden shou .ld.be,.shifted to respondent pursuant to section 7491(a)(1) on those issues .

Pursuant to section 7491(a), the burden of proof.

Section 7491(a) provides in part : SEC .

However, pursuant to section 7491(a), the burden of proof on factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner .

Petitioner does not assert that section- 7491(a) shifts the burden to the Commissioner, and the record does not - permit us to conclude that section 7491(a) applies.

In addition, section 7491(a) provides that if the taxpayer introduces credible evidence and meets certain other prerequisites, the Commissioner shall bear the burden o f proof with respect to factual issues relating to the taxpayer's ;liability for a .tax imposed under subtitle A or B of the Code .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts .to the Commissioner under certain circumstances .

Petitioner contends that the burden of proof regarding th e substantiation of his expenses should be placed on respondent pursuant to section 7491(a) .

Petitioner does not argue that the burden of proof shifts to respondent pursuant to section 7491(a), nor has she shown that the threshold requirements of section 7491(a)i have been met for any of the determinations at issue.

Petitioners have not alleged that section 7491(a) applies or established their compliance with its requirements.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances ..

1949) Pursuant to section 7491(a) ., the burden of proof as to factual.

- 5 Section 7491(a) provides that under certain circumstances, the burden of proof with respect to factual matters shifts to the Commissioner .

Petitioners have not alleged that section .7491(a) applies, nor did they introduce the requisite evidence to invoke that section .

Petitioner has not alleged that section 7491(a) applies or established her compliance with its requirements .

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with its requirements .

7491(a) applies to shift the burden of proof to respondent with regard to any factual issue.

We note initially that petitioner has neither argued nor established that section 7491(a) applies to shift the burden of proof to respondent on any of the three arguments that he makes .

section 7491(a) applies .

Pursuant to section 7491(a), the burden of proof as to,factual matters shifts to the Commissioner under certain circumstances .

Petitioners' Position Petitioners first contend that the burden of proof on -all issues is shifted to respondent pursuant to section 7491(a) .

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with its requirements .

1949 ) Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

7491(a) applies only to court proceedings.

However, pursuant to section 7491(a), the burden of proof on factual issues that affect the taxpayer's tax liability may shift to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue." The burden will shift only if the taxpayer has, inter alia, complied with applicable substantiation requi

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances.

Pursuant to section 7491(a), the burden of proof as to factual issues may shift to the Commissioner where a taxpayer has introduced credible evidence relevant to ascertaining his tax liability .

111, 115 (1933).1 However, pursuant to section 7491(a) (1), the burden of proof on factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible -evidence with respect to * * * such issue." The burden will shift only if the taxpayer has, inter alia, complied with substantiation requir

However, pursuant to section 7491(a), the burden of proof on factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue ." Petitioner has not established that he meets the requirements under section 7491(a)(1) and (2) for

Petitioner has not alleged that section 7491(a) applies, and she has neither complied with the substantiation requirements nor maintained all required records .

Additionally, section 7491(a) requires that the taxpayer cooperate with reasonable requests by the Commissioner fo r "witnesses,.

Because petitioner has not alleged or shown tha t section 7491(a) applies, the burden of proof remains on petitioner .

Petitioner has neither alleged that section 7491(a) applies nor established compliance with the requirements of section 7491(a) .

However, pursuant to section 7491(a), the burden of proof on factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the,"taxpayer introduces credible evidence with respect to * * * such issue ." The burden will shift only if the taxpayer has, inter alia, complied with substantiation requiremen

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts ; to the Commissioner under certain circumstances .

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with its requirements .4 Petitioner therefore bears the burden of proof .

Pursuant to section 7491(a), the burden o proof as to factual matters shifts to the Commissioner under Hertain circumstances .

Pursuant to section 7491(a), the burden of proof as t o factual matters shifts to the Commissioner under certain circumstances .

Petitioners have alleged section 7491(a) applies, and respondent bears the .burden of proof .

Petitioner has neither alleged that section 7491(a) applies nor established her compliance with its requirements .

Petitioner has not alleged that section 7491(a) applies, and she has not complied with the substantiation requirements .

Consequently, we hold that petitioner has the burden of proof as to any disputed.

Pursuant to section 7491(a) the burden of proof may be shifted to the Commissioner where a taxpayer has introduced credible evidence regarding factual issues relevant to ascertaining his tax liability .

Petitioner has not claimed or' shown entitlement to any shift in .the burden of proof pursuant to section 7491(a) .

Pursuant to section 7491(a) the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Pursuant to section 7491(a) the burden'of proof may shift to the Commissioner where a taxpayer has introduced credible evidence regarding factua l issues relevant to ascertaining his tax liability .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Pursuant to section 7491(a) the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

7491(a)(1) Petitioner has not alleged that section 7491(a) applies, and she has.

Petitioners bear the burden of proof because they have neither alleged that section 7491(a) applies nor proven that they have complied with the substantiation and recordkeeping requirements of section 7491 (a) (2) (A) and (B ) II .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Pursuant to section 7491(a), the burden of proof as to factua l matters shifts to the Commissioner under certain circumstances .

Consequently, the burden of proofdoes not shift to respondent pursuant to section 7491(a) .

Petitioner has not alleged that section 7491(a) applies, and she has neither complied with the substantiation requirements nor maintained all required records .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

The Bachmanns bear the burden of proving that the award should be treated in a manner other than the treatment claimed by the IRS in the deficiency notice unless the burden shifts to the IRS pursuant to section 7491(a) .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Petitioners have not alleged that section 7491(a) applies, and they have neither compliedwith'the substantiation requirements nor maintained all required records .

However, pursuant to section 7491(a), the burden of proof on factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue ." Petitioners have not established that they meet the requirements under sectio n .

Petitioner has not alleged that section 7491(a) applies, and she has neither complied with the substantiation requirements nor maintained all required records .

Petitioners have not alleged that section 7491(a) applies, andthey have neither complied with the substantiation requirements nor maintained all required records .° See sec .

Petitioner has not alleged that section 7491(a) applies, and he has neither complied with the substantiation requirements nor maintained all required records .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Pursuant to section 7491(a) the burden of proof as to factual matters shifts to the Commissioner where the taxpayer complies with substantiation requirements, maintains records, and cooperates fully with reasonable requests for witnesses, documents, and other information .

However, pursuant to section 7491(a), the burden'of proof on factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue ." The burden will shift only if the taxpayer has, inter alia, complied with substantiation requiremen

y counsel Theref-orb, weconclu-de" 5 - that the burden of proof regarding the deficiency is not placed on respondent pursuant to section 7491(a) .

Petitioner has neither alleged nor proven that section 7491(a) applies ; accordingly, the burden remains on him .

Accordingly, we hold that respondent satisfied his burden .

Petitioners have not alleged or proven that section 7491(a) applies ; accordingly, the burden remains on petitioners to show that they are entitled to the deductions .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Petitioners have not alleged that section 7491(a) applies, and therefore, the burden: of proof°has not shifted to respondent .

Petitioners do not argue that section 7491(a) is applicable, and they have not established that the burden of proof should shift to respondent, pursuant to section 7491(a) .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

However, pursuant to section 7491(a), the burden of proof on factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue ." The burden will shift only if the taxpayer has, inter alia, complied with substantiation requiremen

We conclude that the burden of proof regarding the deficiency determined in the statutory notice of deficiency is not placed on respondent pursuant to section 7491(a) .

Petitioners do not allege, nor do we find, that section 7491(a) applies .

With respect to the original deficiencies, petitioner contends that the burden of proof with respect to the factual issues thereunder has shifted to respondent pursuant to section 7491(a) because it has .

Pursuant to section 7491(a)., the .burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

However, pursuant to section 7491(a), the burden of proof with respect to any factual issue relating to ascertaining the liability for tax shifts to the Commissioner if the taxpayer : (1) Maintained adequate records ; (2) satisfied the substantiation requirements ; (3) operated with the Commissioner's agents ; and (4) during the Court

7491(a) applies to this case.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

However, pursuant to section 7491(a), the burden of proof on a factual issue that affects the taxpayer's tax liability may shift to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue ." Petitioner argues that the burden of proof shifts to respondent because petitioner has produced credib

Petitioner has not alleged or proven that section 7491(a) applies ; therefore, the burden remains on him .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certai circumstances .

Petitioners have not alleged or proven that section 7491(a) applies ; accordingly, petitioners must prove that they are entitled to the deductions .

de against any party any issue as to which such pa ty has the burden of proof, and such decision shall b treated as a dismissal * * * In the present matter, as regards t e deficiency determination, the burden of proof lies with petitioner under the general premise of Rule 142(a) and has n t shifted pursuant to section 7491(a) .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

However, pursuant to section 7491(a)(1), the burden of proof on factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue ." The burden will shift only if the taxpayer has complied with the substantiation requirements and

Petitioner has not alleged or proven that section 7491(a) applies ; accordingly, the burden remains on him to show that he is entitled to the claimed deductions .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

However, pursuant to section 7491(a)(1), the burden of proof on factual issues that affect the taxpayer’s tax liability may be shifted to the Commissioner where the “taxpayer introduces credible evidence with respect to * * * such issue”.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

However, pursuant to section 7491(a), the burden of proof on factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue" .

- 4 - Pursuant to section 7491(a), the burden of proof as to factual matters shifts to respondent under certain circumstances .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Petitioner has not alleged or proven that section 7491(a) applies; accordingly, the burden remains on her .

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with the requirements of section 7491(a)(2)(A) and (B) to substantiate items, maintain records, and cooperate fully with respondent's reasonable requests .

Petitioner has not proven or even alleged that section 7491(a) applies ; accordingly, the burden remains on him to show that he is entitled to the claimed deductions .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

However, pursuant to section 7491(a)(1), the burden of proof on factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue" .

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with the requirements of section 7491(a)(2)(A) and (B) to substantiate items, maintain records, and cooperate fully with respondent's reasonable requests .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

However, pursuant to section 7491(a)(1), the burden of proof on factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue" .

However, pursuant to section 7491(a)(1), the burden of proof on factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue".

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with the requirements of section 7491(a)(2)(A) and (B) to substantiate items, maintain records, and cooperate fully with respondent's reasonable requests .

However, pursuant to section 7491(a), the burden of proof with respect to any factual issue relating to ascertaining the liability for tax shifts to the Commissioner if the taxpayer : (1) Maintained adequate records ; (2) satisfied the substantiation requirements ; (3) cooperated with the Commissioner's agents ; and (4) during the Cou

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

However, petitioner has neither alleged that section 7491(a) applies nor established his compliance with the requirements of section 7491(a)(2)(A) and (B) to substantiate items, maintain records, and cooperate fully with respondent's reasonable requests .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

7491(a) requires departure from this general rule.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances .

Pursuant to section 7491(a), the burden of proof as to factual issues may shift to the Commissioner where the taxpayer introduces credible evidence and complies with substantiation requirements, maintains records, and cooperates fully with reasonable requests for witnesses, documents, and other information .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to respondent under certain circumstances .

Pursuant to section 7491(a), the burden of proof as to factual issues may shift to the Commissioner where the taxpayer 2 Petitioner clarified at trial that although he listed the church as Faith Tabernacle Baptist Church on his revised statement, the correct name was Faith Tabernacle Church .

Pursuant to section 7491(a), the burden of proof as to factual issues may shift to the Commissioner where the taxpayer introduces credible evidence and complies with substantiation requirements, maintains records, and cooperates fully wit h ' At one point in his testimony petitioner said that he also gave money to his brother

Petitioners have neither alleged that section 7491(a) applies nor established their compliance with the requirements of section 7491(a)(2)(A) and (B) to substantiate items, maintain records, and cooperate fully with respondent’s reasonable requests.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner where the taxpayer complies with substantiation requirements, maintains records, and cooperates fully with reasonable requests for witnesses, documents, and other information.

Burden of Proof Pursuant to section 7491(a), the burden of proof as to factual matters shifts to respondent under certain circumstances.

Pursuant to section 7491(a), the burden of proof as to factual issues may shift to the Commissioner where the taxpayer introduces credible evidence and complies with substantiation requirements, maintains records, and cooperates fully with reasonable requests for witnesses, documents, and other 4 - information .

Section 7491(a) provides, in limited circumstances, that the burden shifts to respondent.

Pursuant to section 7491(a), the burden of proof as to factual issues may shift to the Commissioner where the taxpayer introduces credible evidence and complies with substantiation requirements, maintains records, and cooperates fully with reasonable requests for witnesses, documents, and other information .

Pursuant to section 7491(a), the burden of proof as to factual issues may shift to the Commissioner where the taxpayer introduces credible evidence and complies with substantiation requirements, maintains records, and cooperates fully with reasonable requests for witnesses, documents, and other information .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to-respondent(cid:127)under certain circumstances .

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to respondent under certain circumstances.

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with the requirements of section 7491(a)(2)(A) or (B).

However, pursuant to section 7491(a), the burden of proof with respect to any factual issue relating td ascertaining the liability for tax shifts t o the Commissionerjif the taxpayer : (1) Maintained adequate records ; (2) satisfied the substantiation requirements ; (3 ) cooperated with tie Commissioner's agents ; and (4) during the C

Petitioner has neither alleged that section 7491(a) applies nor established her compliance with the requirements of section 7491(a)(2) (A) and (B) to substantihte items, maintain records, and cooperate fully with respondent's reasonable requests.

For reasons discussed herein, we hold that petitioner did not meet the requirements of section 7491(a)(2).

Petitioners do not contend that section 7491(a) applies in this - 7 - case.

7491(a) applies in this case and have not established that they satisfied the requirements of sec.

- 8 - Petitioners have neither alleged that section 7491(a) applies nor established their compliance with the requirements of section 7491(a)(2)(A) and (B) to substantiate items, maintain all required records, and cooperate fully with respondent’s reasonable requests.

On the basis of the record, we hold that section 7491(a) does not operate to place the burden of proof on respondent; in short, petitioners did not introduce testimony evidence sufficient to place in doubt the exactitude of the documentary record.

Accordingly, we hold that petitioners are not liable for the section 6662(a) accuracy- related penalty.

On the basis of the record, we hold that section 7491(a) does not operate to place the burden of proof on respondent; in short, petitioner did not introduce testimonial (or other) evidence sufficient to place in doubt the documentary evidence in the record.4 Petitioner claims that he disputed his debt with MBNA in the fall of 1999, a

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with the requirements of section 7491(a)(2)(A) and (B) to substantiate items, maintain records, and cooperate fully with 3 Sec.

Petitioner has neither alleged that section 7491(a) applies nor established his compliance with the requirements of section 7491(a)(2)(A) and (B) to substantiate items, maintain records, and cooperate fully with respondent’s reasonable requests.

The burden of proof has not shifted to respondent pursuant to section 7491(a).

On the basis of the record, we hold that section 7491(a) does not operate to shift the burden of proof to respondent because: (1) Petitioner did not introduce credible evidence with respect to any factual issue relevant to ascertaining his liability; (2) he did not comply with the requirements to substantiate his deductions; and (3)

The burden of proof has not shifted to respondent pursuant to section 7491(a).

The burden of proof has not shifted to respondent pursuant to section 7491(a).

Section 7491(a) provides that the burden of proof shifts to respondent under certain specified conditions.

Discussion Section 7491(a) provides that in a court proceeding, the burden of proof with respect to any factual issue shifts to respondent under certain prescribed conditions.

8 We hold that respondent satisfied the burden of production under sec.

Respondent issued petitioner a notice of deficiency dated November 15, 2002.1 Discussion Section 7491(a) provides that in a court proceeding, the burden of proof with respect to any factual issue shifts to the 1 The notice of deficiency included a rate adjustment credit of $138.65, which petitioner had not claimed in his 2001 tax return.

Additionally, the record is silent as to whether the Defense Finance and Accounting Service prepared a separate account and (continued...) - 8 - property settlement, and as such, the payments do not give rise to an alimony deduction.5 Section 7491(a) provides that the burden of proof shifts to respondent under certain specified conditions.

Petitioner does not argue the applicability of section 7491(a), and the record does not reflect that section 7491(a) applies.

Pursuant to section 7491(a)(1), however, the burden of proof shifts to the Commissioner if, among other requirements, the taxpayer introduces “credible evidence with respect to any factual issue relevant to ascertaining” his tax liability.

The burden of proof has not shifted to respondent pursuant to section 7491(a).

We hold that the $30,211.66 damage award is not excludable under section 104(a)(2).

7491(a) requires that the taxpayer cooperate with reasonable requests by the Commissioner for "witnesses, information, documents, meetings, and interviews".

Section 7491(a) provides that the burden of proof is placed on the Commissioner as to any factual issue on which the taxpayer offers credible evidence relevant to his income tax liability, if certain conditions have been satisfied, including the commencement of the Commissioner’s examination after July 22, 1998.

7491(a) applies here.

We hold that petitioner has failed to introduce any credible evidence as to the relevant issue; thus, he has failed to meet the requirements of section 7491(a).

Accordingly, section 7491(a) does not apply.

Section 7491(a)(1) shifts the burden of proof as to any factual issue to the IRS if the “taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability of the taxpayer for any tax imposed by subtitle A or B” and if the taxpayer satisfies the conditions in section 7491(a)(2). A taxpayer bears the burden of proving that the conditions in section 7491(a)(2) are satisfied. See Higbee v. Commissioner, 116 T.C. 438, 440–41 (2001). Because H&S Investments

The facts stipulated are found, and the documents stipulated are accepted as authentic.3 2 Section 7491(a)(1) provides that, if a taxpayer offers credible evidence with respect to any factual issue relevant to determining his tax liability, the burden of proof with respect to the issue is on the Commissioner. See also Rule 142(a)(2). Section 7491(a)(1) applies only if the taxpayer complies with the relevant substantiation requirements in the Code, maintains all required records, and cooperates w

While section 7491(a)(1) provides that, in general, when “a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability of the taxpayer for any tax imposed by subtitle A or B, the [Commissioner] shall have the burden of proof with respect to such issue,” petitioners did not argue that the burden of proof should be shifted to respondent and failed to introduce sufficient evidence to shift the burden to respondent. Accordingly, section 7491(a) doe

taxable year 2018, 100% of the federal poverty line for a family size of three in the continental United States was $20,420 and 400% was $81,680.6 Household income is defined as the MAGI of the taxpayer plus the MAGI of family members (1) for whom the taxpayer properly claims 4 Pursuant to section 7491(a), the burden of proof may shift to the Commissioner if the taxpayer introduces credible evidence with respect to any factual issues relevant to ascertaining the taxpayer’s tax liability. The Cou

3 Section 7491(a)(1) provides that, if a taxpayer offers credible evidence with respect to any issue relevant to determining his tax liability, the burden of proof with respect to the issue is on the Commissioner. See also Rule 142(a)(2). Section 7491(a)(1) applies only if the taxpayer complies with the relevant substantiation requirements in the Code, maintains all required records, and cooperates with the Commissioner with respect to witnesses, information, documents, meetings, and interviews.

Pursuant to section 7491(a), the burden of proof as to factual matters shifts to the Commissioner under certain circumstances. Petitioner does not contend, and the evidence does not establish, that the burden of proof shifts to respondent under section 7491(a) as to any issue of fact. Therefore, petitioner bears the burden of proof as to all factual issues. person, such as the Commissioner or a particular IRS employee, are frivolous. See, e.g., Reynolds v. Commissioner, T.C. Memo. 2006-192, 92 T

He attempted to substantiate these entries by providing 2016 Visa Signature (Alaska Airlines) credit card statements, which display numerous transactions and do not distinguish between personal and business expenses. And, as with his other logs, petitioner did not explain the specific business purpose for any of his meals and entertainment expenses. Discussion As a general rule, the Commissioner’s determinations of a taxpayer’s liability in a notice of deficiency are presumed correct, and the ta

7491(a)(1) provides that, ifa taxpayer offers credible evidence with respect to any issue relevant to determining his tax liability, the burden ofproof with respect to the issue is on the Commissioner. See also Rule 142(a)(2). Sec. 7491(a)(1) applies only ifthe taxpayer complies with the relevant substantiation requirements in the Code, maintains all required records, and cooperates with the Commissioner with respect to witnesses, information, documents, meetings, and interviews. Sec. 7491(a)(2)

From there, Higbee transitions into a discussion ofthe difference between "burden ofproduction" and "burden ofproof" and cites section 7491(a)--which uses the word "taxpayer" and not "individual"--before explaining that "once the Commissioner meets his burden - 31 - [*31] ofproduction, the taxpayermust come forward with evidence sufficient to persuade a Court that the Commissioner's determination is incorrect." Id.

Pursuant to section 7491(a)(1), the burden ofproofwith respect to relevant factual issues may shift to the Commissioner ifcertain criteria are satisfied. Section 7491(a)(2) provides that the burden ofproofshifts to the Commissioner only when the taxpayer has: (1) "complied with the requirements under this title to substantiate any item" and (2) "maintained all records required under this title and has cooperated with reasonable requests by the Secretary for witnesses, information, documents, mee

ovides: "If, in any court proceeding, a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability ofthe taxpayer for any tax imposed by subtitle A or B, the Secretary shall have the burden ofproofwith respect to such issue." Section - 11 - [*11] 7491(a)(2) further provides that the burden ofproofshifts to the Commissioner only when the taxpayerhas: (1) "complied with the requirements under this title to substantiate any item" and (2) "maintai

easement given to NAT. Because there is no disagreement that these amounts exceed 10% ofthe tax required to be shown on petitioners' 24Petitioners contend that respondent bears the burden ofproofas to the penalties under the burden-shifting rules ofsec. 7491(a). We disagree. Sec. 7491(c), rather than sec. 7491(a), applies to penalties. See Higbee v. Commissioner, 116 T.C. 438, 447 n.6 (2001) ("Considering * * * [the] limiting language ofsec. 6665(a)(2), the reference in sec. 7491(a) to tax liab

7491(a)(1) provides an exception that shifts the burden ofproofto the Commissioner as to any factual issue relevant to a taxpayer's liability for tax if: (1) the taxpayer introduces credible evidence with respect to that issue and (2) the taxpayer satisfies certain other conditions, including substantiation ofany item and cooperation with the Government's requests for witnesses, documents, other information, and meetings. Sec. 7491(a)(2). Petitioner has not raised sec. 7491, and we conclude that

7491(a).3 Deductions and credits are a matter of legislative grace, and the taxpayer bears the burden ofproving that he or she is entitled to any deduction or credit claimed. Rule 142(a); Deputy v. du Pont, 308 U.S. 488, 493 (1940); New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). II. Dependency Exemption Deduction In general a taxpayermay claim a dependency exemption deduction "for each individual who is a dependent (as defined in section 152) ofthe taxpayer for the taxable year." S

This is because, petitioners argue, section 7491(a) applies to shift the burden of proof on that issue to respondent.

are to the Internal Revenue Code of 1986, as amended and in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. We round all dollar amounts to the nearest dollar. Petitioners have not invoked sec. 7491(a), which shifts the burden of proof to the Commissioner in certain situations. In any event, sec. 7491(a) is inapplicable herein because petitioners have failed to introduce credible evidence that respondent’s adjustments were in error, se

a beliefthat any resulting increase in its estate tax liability is unlikely to be significant. That is because petitioner believes that estate tax attributable to the "(...continued) involving a mixed question offact and law, or a question offact", sec. 7491(a) applies to shift the burden ofproofto respondent with respect to any factual issues. As noted supra note 4, respondent also suggests that petitioner's motion raises issues offact, a suggestion that we have rejected as inconsistent with t

111, 115 (1933).6 Under section 7491(a), ifthe taxpayerproduces credible evidence with respect to any factual issue relevant to ascertaining the taxpayer's liability for tax and meets other requirements, the burden ofproofshifts from the taxpayerto the Commissioner as to that factual issue. Petitioner has neither alleged that 6On rare occasions this Court has recognized an exception to these rules in cases involving unreported income where the Commissioner introduces no substantive evidence but

Section 7491(a) sometimes shifts to the Commissioner part or all ofthe.burden ofproofwhere the taxpayer introduces credible evidence of a factual matter, but that section does not apply where a , taxpayer fails to satisfy the related requireinents. See, e.g., sec. 7491(a)(2)(A), (B), . and (C). Petitioner has failed to establish that it meets all o

Section 7491(a) sometimes shifts the burden ofproofto the Commissioner, but that section does not apply here because we find that petitioners failed to satisfy each requirement set forth in section 7491(a)(2)(A) and (B).20 Petitioners argue that respondent has the burden ofproofirrespective ofany applicability ofsection 7491 because, they state, re

ant to resolution of the issues here presented, and we shall refer only to the provisions of those sections applicable to the latter years. The burden of proof plays little role in our analysis. Nevertheless, petitioners have not raised the issue of sec. 7491(a), which shifts the burden of proof to the Commissioner in certain situations. We conclude that sec. 7491(a) does not apply because petitioners have not produced any evidence that they have satisfied the preconditions for its application.

lty on petitioner pursuant to section 6673(a)(1). An appropriate order and decision will be entered. Section references are to the Internal Revenue Code of 1986, as amended and in effect for the years in issue. Petitioner has not raised the issue of sec. 7491(a), which shifts the burden of proof to the Commissioner in certain situations. In any event, sec. 7491(a) does not apply here because petitioner has not shown that he has satisfied the preconditions for its application. See sec. 7491(a)(2)

Section 7491(a) sometimes shifts the burden of proof to the Commissioner, but that section does not apply where a taxpayer fails to satisfy the record-keeping and substantiation requirements. See sec. 7491(a)(2)(A) and (B). Petitioner has failed to satisfy those requirements. Respondent bears the burden of proof only with respect to the increased d

7491(a); Rule 142(a). We did not consider whether sec. 7491(a) would apply because our resolution of the issues is generally based on the preponderance of the evidence. See Estate of Bongard v. Commissioner, 124 T.C. 95, 111 (2005). We note here that, with respect to petitioners' basis in the house, the burden of proof is relevant. Petitioners have introduced no evidence with respect to their construction of and improvements to the house, other than very general testimony about costs. Accordingl

The facts of the instant case are distinguishable from those of Scar.. In the instant case., the adjustments in the notice of deficiency all relate to petitioner's 2005 income tax return . Moreover, petitioner claims that Ms . Robles reviewed his return but did not follow proper procedures. Finally, Scar involved a violation of a statutory provision, while petitioner alleges a violation of the IRM, whic h does not have the force and effect of law . See Valen Manufacturing Co . v . United States

Section 7491(a), however, provides that if the taxpayer introduces credible evidence and meets certain other prerequisites, the Commissioner shall. bear the burden of proof with respect to factual issues relating to the taxpayer's liability for a tax 11 imposed under subtitle A or B of the Code . Petitioner does not dispute receiving the wages or respondent's calculation of tax . Rather, petitioner disagrees only with respondent's legal conclusions (i .e ., that petitioner's 11 wages are taxable

to the VFD less than their entire interest in the lake house; and (2) the lake house as donated to the VFD was worthless. B. Petitioners’ Position Petitioners first contend that the burden of proof on all issues is shifted to respondent pursuant to section 7491(a). Petitioners assert that the Court should not consider respondent’s quid pro quo argument (to the effect that petitioners received a benefit in exchange for their donation) because this argument constitutes new matter that respondent

rincipal residence. Petitioners’ 2000 return was postmarked on Sept. 5, 2001. In the notice of deficiency respondent determined a $500,000 adjustment because petitioners had conceded a $91,406 capital gain adjustment. Petitioners do not contend that sec. 7491(a) shifts the burden of proof to respondent, and petitioners have not established that the requirements of sec. 7491(a) have been met. Moreover, because there are no factual issues in dispute, sec. 7491(a) does not apply. Black's Law Dictio

ssion issue. We accept petitioner’s concession. III. Conclusion Taking into account our prior Opinion in PPL Corp. & Subs. v. Commissioner, 135 T.C. 176 (2010), Decision will be entered under Rule 155. APPENDIX Petitioner has not raised the issue of sec. 7491(a), which shifts the burden of proof to the Commissioner in certain situations. We conclude that sec. 7491(a) does not apply because petitioner has not produced any evidence that it has satisfied the preconditions for its application. See s

435,-440 (1934) .' While'section 7491(a) sometimes shifts the burden of proof to the Commissioner, that section is not applicable where, as here, petitioners have failed to meet the recordkeeping and substantiation requirements of the Code .

See Rule 142(a) ; Petitioners have not raised the issue of section 7491(a),,which shifts the burden of proof to the Commissioner in certain situations .

In addition, section 7491(a) provides that if the taxpayer introduces credible evidence and meets certain other prerequisites, the Commissioner shall bear the burden of proof with respect to factual issues relating to the liability of the taxpayer for a tax imposed under subtitle A or B of the Code . 4 Petitioner has not alleged that section 7491(a) applies, and he failed to cooperate with respondent's reasonable requests fo r 4 Petitioner did not dispute the accuracy of the information reported

See Rule 142(a) ; Petitioners have not raised the issue of section 7491(a),,which shifts the burden of proof to the Commissioner in certain situations .

See Rule 142(a) ; Petitioners have not raised the issue of section 7491(a),,which shifts the burden of proof to the Commissioner in certain situations .

Section 7491(a), providing for a shift to the Commissioner of the burden of proof in certain circumstances, is inapplicable to trust fund penalty cases. In any event we find on a preponderance of the evidence that employment taxes were not paid, that petitioner was a responsible person, and that she willfully failed to pay over those taxes. C. Resp

prescribed by the Secretary, sec. 170(a)(1), including certain substantiation requirements provided in section 1.170A-13(c)(2), Income Tax Regs. In addition, no deduction for any contribution in excess of $250 is allowed 26 Petitioners concede that sec. 7491(a) does not apply in this proceeding. - 40 - unless the taxpayer substantiates it by a contemporaneous written acknowledgment by the donee organization. Sec. 170(f)(8). The question of what constitutes a "contribution or gift" for purposes

prescribed by the Secretary, sec. 170(a)(1), including certain substantiation requirements provided in section 1.170A-13(c)(2), Income Tax Regs. In addition, no deduction for any contribution in excess of $250 is allowed 26 Petitioners concede that sec. 7491(a) does not apply in this proceeding. - 40 - unless the taxpayer substantiates it by a contemporaneous written acknowledgment by the donee organization. Sec. 170(f)(8). The question of what constitutes a "contribution or gift" for purposes

prescribed by the Secretary, sec. 170(a)(1), including certain substantiation requirements provided in section 1.170A-13(c)(2), Income Tax Regs. In addition, no deduction for any contribution in excess of $250 is allowed 26 Petitioners concede that sec. 7491(a) does not apply in this proceeding. - 40 - unless the taxpayer substantiates it by a contemporaneous written acknowledgment by the donee organization. Sec. 170(f)(8). The question of what constitutes a "contribution or gift" for purposes

prescribed by the Secretary, sec. 170(a)(1), including certain substantiation requirements provided in section 1.170A-13(c)(2), Income Tax Regs. In addition, no deduction for any contribution in excess of $250 is allowed 26 Petitioners concede that sec. 7491(a) does not apply in this proceeding. - 40 - unless the taxpayer substantiates it by a contemporaneous written acknowledgment by the donee organization. Sec. 170(f)(8). The question of what constitutes a "contribution or gift" for purposes

prescribed by the Secretary, sec. 170(a)(1), including certain substantiation requirements provided in section 1.170A-13(c)(2), Income Tax Regs. In addition, no deduction for any contribution in excess of $250 is allowed 26 Petitioners concede that sec. 7491(a) does not apply in this proceeding. - 40 - unless the taxpayer substantiates it by a contemporaneous written acknowledgment by the donee organization. Sec. 170(f)(8). The question of what constitutes a "contribution or gift" for purposes

prescribed by the Secretary, sec. 170(a)(1), including certain substantiation requirements provided in section 1.170A-13(c)(2), Income Tax Regs. In addition, no deduction for any contribution in excess of $250 is allowed 26 Petitioners concede that sec. 7491(a) does not apply in this proceeding. - 40 - unless the taxpayer substantiates it by a contemporaneous written acknowledgment by the donee organization. Sec. 170(f)(8). The question of what constitutes a "contribution or gift" for purposes

prescribed by the Secretary, sec. 170(a)(1), including certain substantiation requirements provided in section 1.170A-13(c)(2), Income Tax Regs. In addition, no deduction for any contribution in excess of $250 is allowed 26 Petitioners concede that sec. 7491(a) does not apply in this proceeding. - 40 - unless the taxpayer substantiates it by a contemporaneous written acknowledgment by the donee organization. Sec. 170(f)(8). The question of what constitutes a "contribution or gift" for purposes

Petitioners request that we reconsider whether they satisfied the requirements under section 7491(a) to shift the burden of proof to respondent.

Section 7491(a) does not apply in this case because petitioner did not introduce credible evidence that he is entitled to the deduction he seeks . In general, under section 151(a) and (c), a taxpayer is allowed a dependency exemption deduction for each dependent . Sec. 152(a)(1) . The definition of a "dependent" provided by section 152(a) includes

Burden of Proof Section 7491(a) was added to the Internal Revenue Code by the Internal Revenue Service Restructuring and Reform Act of 1998, Pub .

However, pursuant to section 7491(a), the burden of proof on any factual issue that affects the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such issue" .

More fundamentally, section 7491 has no applicability to these consolidated cases.7 Section 7491(a) operates to shift the burden of proof to the Commissioner in certain circumstances with 7 Moreover, petitioner failed to establish that sec.

ibutable to DDR and that DDR is a separate legal entity from which he received a salary . Conversely, respondent contends that DDR does not exist, and that the $63,850 is attributable to petitioner . There is insufficient evidence to establish the 2 Sec. 7491(a) is inapplicable because petitioner failed to introduce credible evidence within the meaning of sec . 7491(a)(1) . - 4 - existence of DDR . Moreover, when petitioner was questioned at trial about how much of the $63,850 he was paid from D

7491(a)(2)(B).) The doctrine of Cohan v. Commissioner, supra, permits the Court to estimate allowable deductions when it is clear that - 8 - deductible expenses have been incurred. However, there must be sufficient evidence in the record to provide a basis for making an estimate. Mendes v. Commissioner, 121 T.C. 308 (2003); Vanicek v. Commiss

Section 7491(a) does not apply in this case because petitioner has not substantiated the deductions he -6- seeks or shown that he has maintained sufficient records . Sec . 7491(a) (2) (A) and (B) . In his petition, petitioner claimed that respondent erred by not computing his deductions for Schedule C expenses, Schedule A interest, charitable cont

By their terms, neither section 7491(a) nor section 7491(c) is applicable here .

Pursuant to section 7491(a), the burden of proof on factual - 5 - issues that affect the taxpayer’s tax liability may be shifted to the Commissioner where the “taxpayer introduces credible evidence with respect to any factual issue”.

Commissioner, 86 T.C. 468, 476 n.5 (1986). In order to satisfy their initial burden of production, petitioners were required to introduce evidence sufficient, if believed, to demonstrate by a 32In the stipulation of facts, petitioners conceded that sec. 7491(a) does not apply to shift the burden of proof to respondent. - 27 - preponderance of the evidence that respondent’s determination is excessive; i.e., erroneous, and/or arbitrary; i.e., “without rational foundation”. Helvering v. Taylor, 293

Section 7491(a)(1) provides that if, in any court proceeding, the taxpayer introduces credible evidence with respect to factual issues relevant to ascertaining the taxpayer’s liability for a tax, the burden of proof with respect to such factual issues will be placed on the Commissioner. See Higbee v. Commissioner, 116 T.C. 438, 440-441 (2001). Petitioner has not raised the issue of section 7491(a)(1), nor has he introduced any credible evidence with respect to the factual issues. Therefore, sect

Commissioner, 86 T.C. 468, 476 n.5 (1986). In order to satisfy their initial burden of production, petitioners were required to introduce evidence sufficient, if believed, to demonstrate by a 32In the stipulation of facts, petitioners conceded that sec. 7491(a) does not apply to shift the burden of proof to respondent. - 27 - preponderance of the evidence that respondent’s determination is excessive; i.e., erroneous, and/or arbitrary; i.e., “without rational foundation”. Helvering v. Taylor, 293

7491(a) is inapplicable to this case as respondent’s examination of the 1982, 1983, and 1984 tax years began before July 22, 1998. See Higbee v. Commissioner, 116 T.C. 438, 440 (2001). --- DISSENT --- Marvel, J., dissenting: I agree with the majority’s statement that “The crux of this dispute is the application of the last sentence of section

Section 7491(a), however, shifts the burden of proof to the Commissioner with respect to a factual issue affecting the tax liability of a taxpayer who meets certain preliminary conditions. Petitioner failed to cooperate with respondent and did not produce any credible evidence with respect to any matter in this case. See sec. 7491(a). Furthermore,

Section 7491(a) shifts the burden of proof to the Commissioner with respect to a factual issue affecting the tax liability of a taxpayer who meets certain preliminary conditions. Petitioner failed to cooperate with respondent and did not - 4 - produce any credible evidence with respect to any matter in this case. See sec. 7491(a). Furthermore, pet

Section 7491(a) modifies the general rule regarding the burden of proof in court proceedings arising in connection with examinations commencing after July 22, 1998. Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3001(c)(1), 112 Stat. 727. When a taxpayer has introduced credible evidence with respect to a factua

ment. As of the time of the trial in this case, the Maryland Circuit Court was considering in the insurance litigation numerous posttrial motions and had not reduced the insurance litigation verdict to final judgment. -13- OPINION We first address section 7491(a). The parties agree that the examination in this case commenced after the effective date of section 7491. The parties disagree, however, over whether the burden of proof shifts to respondent under that section. Section 7491(a)(1) may shi

ation by showing an income source beneficially owned by petitioner. Weimerskirch v. Commissioner, supra. “‘Beneficial ownership is marked by command over property or enjoyment of its economic benefits.’” Cordes v. Commissioner, T.C. Memo. 1994-377 6 Sec. 7491(a) was added to the Internal Revenue Code by the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3001(c), 112 Stat. 727, effective for court proceedings arising from examinations commencing after July 22

7491(a) is inapplicable because petitioner does not meet the net worth requirements of sec. 7430(c)(4)(A)(ii), which are cross-referenced in sec. 7491(a')(2)(C). - 8 - Roth Steel Tube Co. v. Commissioner, 800 F.2d 625, 630 (6th Cir. 1986), affg. T.C. Memo. 1985-58. In determining the economic reality of a related party transfer, "'the ultimat

Therefore, section 7491(a) does not apply in this case. Another case in which the burden may shift to respondent concerns the determination that there is unreported income. Under the holdings of the U.S. Court of Appeals for the Ninth Circuit (to which an appeal would normally lie for petitioner) respondent is required to build an evi

Section 7491(a) modifies the general rule regarding the burden of proof in court proceedings arising in connection with examinations commencing after July 22, 1998. Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3001(c)(1), 112 Stat. 727. When a taxpayer has introduced credible evidence with respect to a factua

111, 115 (1933).4 Section 7491(a), however, provides that if a taxpayer introduces credible evidence and meets certain other·prérequisites, the Commissioner shall bear the burden of proof with respect to factual issues relating to the liability of the taxpayer for a tax imposed under subtitle A or B of the Internal Revenue Code (Code).

Accordingly, section 7491(a) does not apply.

Section 7491(a), however, provides that if a taxpayer introduces credible evidence and meets certain other prerequisites, the Commissioner bears the burden of proof with respect to factual issues relating to the liability of the taxpayer for a tax imposed under subtitle A or B of the Code. For the burden to shift, however, the taxpayer must comply

; Byerlite Corp. v. Williams, 286 F.2d 285, 291 (6th Cir. 1960), and a finding of economic substance turns on whether the transfer would have followed the same form had it been between the transferee and an 6 Petitioners have not raised the issue of sec. 7491(a), which shifts the burden of proof to the Commissioner in certain situations, and we conclude that sec. 7491(a) does not apply. In the case of a corporation such as each petitioner, sec. 7491(a)(2) limits the shifting of the burden of pro

7491(a); Rule 142(a)(2). Sec. 7491 applies to court cases arising in connection with examinations commencing after July 22, 1998. See Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3001(c)(2), 112 Stat. 726. Because the examination underlying this case commenced before July 23, 1998, sec. 7491(a) does not

OPINION Because the Court decides the issues in this case without regard to the burden of proof, section 7491(a) is inapplicable.

Whether respondent bears the burden of proof under section 7491(a)2 as to respondent’s deficiency determination.

7491(a) shifts the burden of proof under certain circumstances to respondent and applies to examinations commenced after July 22, 1998. Because the examination in this case commenced on Jan. 6, 1998, sec. 7491(a) does not apply. 4The debt must also be a bona fide debt in order to be deductible; that is, a debt that arises from a debtor-credito

and (H) of sec. 4975(e)(2)). Respondent contends that the Plan's loans to 6 Sec. 7491, relating to burden of proof, was not drawn in issue by either side. However, for completeness, and in light of petitioner's pro se status, we note the following: Sec. 7491(a) provides for shifting the burden of proof (if certain conditions have been satisfied) with respect to "any factual issue relevant to ascertaining the liability of the taxpayer for any tax imposed by subtitle A or B". Sec. 7491(a)(1). The

Section 7491(a) does not apply because this case involves legal issues. On Form 1040, U.S. Individual Tax Return, for taxable year 2000, petitioner reported $11,835 in wage income. Petitioner did not report any other income. Petitioner also claimed head of household filing status, two dependency exemptions, and the standard deduction. Petitioner cl

A failure to cooperate would also seem to render section 7491(a) inapplicable.

Whether Petitioner or Respondent Bears the Burden of Proof Petitioner contends that respondent bears the burden of proof relating to the deficiency because section 7491(a) applies and because the notices of deficiency were arbitrary and erroneous for each year in issue.

xpayer to deduct an NOL for a taxable year. The amount of the NOL deduction equals the sum of the NOL carryovers plus NOL carrybacks to that year. Sec. 172(a). Absent an election to the contrary, an NOL for any taxable year 2 The parties agree that sec. 7491(a) is inapplicable in this case, as the examination began before the effective date of the statute. - 11 - must first be carried back 3 years and then carried over 15 years.3 Sec. 172(b)(1)(A), (2), and (3). A taxpayer claiming an NOL deduct

- 5 - rule, section 7491(a) places upon the Commissioner the burden of proof with respect to any factual issue if the taxpayer maintained adequate records, satisfied applicable substantiation requirements, cooperated with the Commissioner, and introduced during the court proceeding credible evidence on the factual issue.

As one exception to this rule, section 7491(a) places upon respondent the burden of proof with respect to any factual issue if the taxpayer maintained adequate records, satisfied applicable substantiation requirements, cooperated with respondent, and introduced during the court proceeding credible evidence on the factual issue.3 The legislative history of 3 The relevant language

As one exception to this rule, section 7491(a) places upon the Commissioner the burden of proof with respect to any factual issue if the taxpayer maintained adequate records, satisfied applicable substantiation requirements, cooperated with the Commissioner, and introduced during the court proceeding credible evidence on the factual issue.

812 deficiency in their 1998 Federal income tax and an accuracy-related penalty of $8,762.40 under section - 2 - 6662(a).1 After concessions, we decide the following issues: 1. Whether the burden of proof has been shifted to respondent by virtue of section 7491(a). We hold that the burden of proof remains with petitioners. 2. Whether petitioners underreported their Schedule C, Profit or Loss From Business, gross receipts by $137,221. We hold that they did. 3. Whether petitioners are liable for t

7491(a) does not apply, and petitioner bears the burden of proof on all issues in this case. Rule 142(a)(1). - 9 - return files for 1993. Those documents were not admitted in part because petitioner did not exchange them 15 days before trial as required by our standing pretrial order served on him more than 5 months before trial. Materials no

7491(a) does not apply because the examination for each year in issue commenced before July 23, 1998. - 13 - B. Whether Petitioner Had Unreported Income in 1993-95 1. Petitioner’s Gross Receipts for 1993 Respondent contends that petitioner had unreported gross receipts of $345,172 for 1993. Petitioner contends that he had unreported gross rec

As one exception to this rule, section 7491(a) places upon the Commissioner the burden of proof with respect to any factual issue relevant to a taxpayer’s liability for tax if the taxpayer maintained adequate records, satisfied applicable substantiation requirements, cooperated with respondent, and introduced during the court proceeding credible evidence on the factual issue.

xpayer to deduct an NOL for a taxable year. The amount of the NOL deduction equals the sum of the NOL carryovers plus NOL carrybacks to that year. Sec. 172(a). Absent an election to the contrary, an NOL for any taxable year 2 The parties agree that sec. 7491(a) is inapplicable in this case, as the examination began before the effective date of the statute. - 11 - must first be carried back 3 years and then carried over 15 years.3 Sec. 172(b)(1)(A), (2), and (3). A taxpayer claiming an NOL deduct

ill be income to petitioner. See secs. 61(a)(3), 1001, 1011. Petitioner has the burden to establish that he sold assets to Czarnowski and to establish his bases in the assets sold. See Rule 142(a)(1); Welch v. Helvering, 290 U.S. 111, 115 (1933).3 3 Sec. 7491(a) does not apply because petitioner failed to maintain adequate records. - 4 - While we are willing to assume that petitioner sold some assets to Czarnowski, petitioner failed to provide any information concerning the identity of the asset

We also note that section 7491(a), which in certain cases shifts the burden of proof to the Commissioner, does not apply to employment tax determinations.

- 11 - section 7491(a)(1), however, the burden of proof shifts to the Commissioner if, inter alia, the taxpayer first introduces credible evidence with respect to any factual issue relevant to ascertaining the taxpayer’s liability for income tax.12 Higbee v. Commissioner, 116 T.C. 438, 442 (2001). With respect to a taxpayer’s liability for any penalty, however, section 7491(c) places on the Commissioner the burden of production. A. The IRA Distribution13 Generally, any amount paid or distributed

Section 7491(a) does not apply because the examination of petitioner’s liabilities in issue commenced before the effective date of that section. The Commissioner has 3 years from the time a return is filed to issue a notice of deficiency with respect to income tax. See secs. 6212(a), 6213(a), 6501(a). Section 7502(a)(1) provides that, in certain ci

Thus, section 7491(a) does not apply, and respondent's determination is presumed to be correct and petitioner bears the burden of proof on all issues in this case. Rule 142(a)(1); Welch v. Helvering, 290 U.S. 111, 115 (1933). C. Whether Petitioner Constructively Received All of His Lottery Winnings in 1989 Petitioner contends that the NYSL amounts that h

ce or otherwise.” Under section 165(a), a theft loss deduction is allowable for the year “in which the taxpayer discovers such loss.” Sec. 165(e). If in the year of discovery the taxpayer has a claim for reimbursement on which there is a reasonable 4Sec. 7491(a) places the burden of proof on the Commissioner in certain circumstances in court proceedings arising from IRS examinations beginning after July 22, 1998. See Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206,

7491(a)(1); Rule 142(a)(2). Sec. 7491 is effective with respect to court proceedings arising from examinations commenced after July 22, 1998. See Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3001(c)(2), 112 Stat. 685, 726. The parties have stipulated that respondent’s examination began in May 1996. Accor

in Ram.3 The parties disagree on whether the disputed transactions increased Jerry’s adjusted basis in Ram. Each of those transactions involved funds provided to Ram directly from someone other than Jerry. Petitioners contend that Jerry indirectly 3 Sec. 7491(a), which places the burden of proof upon the Commissioner in specified circumstances, is inapplicable to this case. Sec. 7491(a) applies only to court proceedings arising from examinations commencing after July 22, 1998. Internal Revenue S

“necessary” an expense must be “appropriate and helpful” to the taxpayer’s business. Welch v. Helvering, 290 U.S. 111, 113 (1933). To be 4 Upon reviewing the record, it is unclear when the audit of petitioner’s 1996 return commenced. However, since sec. 7491(a) does not alter the taxpayer’s burden of proof where the taxpayer has not complied with all applicable substantiation requirements, including those of sec. 274(d), sec. 7491(a) does not apply in this case. Higbee v. Commissioner, 116 T.C.

payer has the usual burden of establishing, by a preponderance of the evidence, that the Commissioner’s determination is arbitrary or erroneous. Rapp v. Commissioner, supra at 935; Petzoldt v. Commissioner, supra at 689. The Court 7 The provision of sec. 7491(a) for shifting the burden of proof to the Commissioner applies only to Court proceedings arising in connection with examinations commenced after July 22, 1998, Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206,

- 4 - Section 7491(a) places the burden of proof on respondent with regard to certain factual issues. Section 7491 applies to examinations commencing after July 22, 1998. Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3001, 112 Stat. 726. Upon reviewing the record, it is unclear when the examination of petitioner’s 1997 return com

Although section 7491(a) may operate in specified circumstances to place the burden on the Commissioner, subsection (a)(3) of that section provides that the burden-shifting does not apply "to any issue if any other provision of this title provides for a specific burden of proof with respect to such issue." Section 6015(b)(1)(C) expressly requires the spouse

ber 15, 1999. After she was evicted from her house in July 1999, petitioner in January 2000 permanently moved into the condominium that she owned and had previously rented out. Petitioner asserts that she was living in temporary housing and lacked 6 Sec. 7491(a) does not apply to place the burden of proof on respondent because petitioner has neither alleged that sec. 7491 is applicable nor established that she complied with the requirements of sec. 7491(a)(2)(A) and (B) to substantiate items, ma

Whether Petitioner Bears the Burden of Proof Petitioner contends that respondent bears the burden of proof under section 7491(a).1 We disagree.

at 219, and petitioners bear the burden of proving that they are entitled to such a deduction.2 Rule 142(a)(1); INDOPCO, Inc. v. ¹ Petitioners make no assertion that GBI also had an economic interest in the usable materials. 2 The parties agree that sec. 7491(a), which places the burden of proof on respondent in certain cases, does not apply here. Sec. 7491 applies only to court proceedings arising from (continued...) U.S. 79, 84 (1992); New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934

Section 7491(a), cited by petitioners, does not apply because the examination was begun in 1996, prior to the effective date of the burden of proof rule provided by the section. In any event, the provisions of section 7491(a) would not help petitioners’ case. See Higbee v. Commissioner, 116 T.C. __ (June 6, 2001). - 8 - To reflect stipulated adjus

Section 7491(a), a new provision created by Internal Revenue Service Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206, sec. 3001, 112 Stat. 685, 726, places the burden of proof on respondent with regard to certain factual issues. Section 7491 applies to examinations commenced after July 22, 1998. See RRA 1998 sec. 3001(c), 112 Stat.

al capacity, in performing a ministerial act. See sec. 6404(e)(1).14 An error or delay by the Commissioner can be taken into account only (1) If it occurs after the Commissioner has contacted the taxpayer in writing with respect to the deficiency 13 Sec. 7491(a) serves to shift the burden of proof if, inter alia, the taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability of the taxpayer for any tax imposed by subtitle A or B. In general, in

In certain circumstances, if the taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the proper tax liability, then section 7491(a)(1) shifts the burden of proof to the Commissioner.

c)(1); Foster v. Commissioner, 138 T.C. 51, 53 (2012). When the taxpayer constructs a residence, the date ofpurchase ofthe residence is "the date the taxpayer first occupies such residence". Sec. 36(c)(3)(B). 3Petitioner argued for the application ofsec. 7491(a), which, subject to certain conditions, shifts the burden ofprooffrom the taxpayer to the Commissioner with respect to "any factual issue relevant to ascertaining the liability for any taxpayer for any tax imposed" by various provisions o

the year at issue, and Rule references are to the Tax Court Rules of Practice and Procedure. We decide this case without regard to the allocation of the burden of proof. We therefore need not decide whether petitioners satisfied the requirements of sec. 7491(a). See Blodgett v. Commissioner, 394 F.3d 1030, 1039 (8th Cir. 2005), aff’g T.C. Memo. 2003-212; Knudsen v. Commissioner, 131 T.C. 185, 188-189 (2008). We question the timing of respondent’s constructive dividend adjustment. TWC advanced p

7491(a); Rule 142(a) (2). Respondent alleges that "petitioners did not even attempt to substantiate the great majority of the [disallowed] expenses" as required by section 7491(a) (2) (A). We need not decide whether section 7491(a) applies to the material factual issue in these consolidated cases (the viability of Robucci P.C. and Westsphere)

Because we do not decide this case by reference to theplacement of the burden of proof, we need not and do not decide whether petitioners have met the requirements under section 7491(a) to shift the burden of proof to respondent .

Under section 7491(a), if the taxpayer produces credible evidence with respect to any factual issue relevant to ascertaining the taxpayer’s liability and meets other requirements, the burden of proof shifts from the taxpayer to the Commissioner as to that factual issue. Neither party addressed the burden of proof. Because we decide this case on the basis

Black's estate and trustee of the marital trust, (b) a'$1,150,000 fee paid to the law firm of MacDonald, Illig, Jones & Britton LLP (MacDonald Illig), and (c) $980,625 paid to Black LP as reimbursement for expenses incurred in connection with a secondary offering of stock Black LP held (together, the fee deductibility issues) ; (6) whether under, section 7491(a) respondent bears the burden of proof with respect to all factual issues (the burden of proof issue) .

Black's estate and trustee of the marital trust, (b) a'$1,150,000 fee paid to the law firm of MacDonald, Illig, Jones & Britton LLP (MacDonald Illig), and (c) $980,625 paid to Black LP as reimbursement for expenses incurred in connection with a secondary offering of stock Black LP held (together, the fee deductibility issues) ; (6) whether under, section 7491(a) respondent bears the burden of proof with respect to all factual issues (the burden of proof issue) .

Under section 7491(a), if the taxpayer produces credible evidence with respect to any factual issue relevant to ascertaining the taxpayer’s liability and meets other requirements, the burden of proof shifts from the taxpayer to the Commissioner as to that factual issue. Because we decide this case on the basis of the preponderance of the evidence, we nee

rden of proof or the effect of a failure of proof . Rule 122(b) ; Borchers v. Commissioner, 95 T .C . 82, 91 (1990), affd . 943 F .2d 22 (8th Cir . 1991) . The parties disagree over whether the burden of proof in this case shifts to respondent under section 7491(a) . We need not, and we shall not, address that disagreement . That is be- cause resolution of the issues presented here does not depend on who has the burden of proof . Respondent concedes that petitioner is entitled to dispute the und

We need not decide whether the burden of proof shifts to respondent under section 7491(a) because we decide this case on the basis of the preponderance of evidence on the record .

t after the resolution of this case. That petition will describe what happened here, and only then will he ask the probate court to approve distributions to the beneficiaries. We need not decide whether the burden of proof shifts to respondent under sec. 7491(a) because the case is mostly determined by applying the law to undisputed facts. Where there were disputed facts, both parties met their burden of production, and findings were based on a preponderance of the evidence. See Deskins v. Commi

ess otherwise indicated, all section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. 3 The parties also disagree regarding the application of sec. 7491(a) to this case. If applicable to a factual issue, sec. 7491(a) would cause the burden of proof on that issue to shift from petitioners to respondent. See Rule 142(a). We need not decide whether sec. 7491(a) applies herein because we resolv

However, the burden of proof with respect to a factual issue relevant to the liability of a taxpayer for tax may shift to the Commissioner under section 7491(a) if the taxpayer has produced credible evidence relating to the issue, has met his substantiation requirements, maintained records, and cooperated with the Secretary's reasonable requests for documents, witnesses, and meetings .

a taxpayer to substantiate deductions through secondary evidence where the underlying documents have been unintentionally lost or destroyed. Boyd v. Commissioner, 122 T.C. 305, 320-321 (2004); 6 Petitioners do not contend, nor have they shown, that sec. 7491(a), which shifts the burden of proof to the Commissioner in some circumstances, applies to this case. - 12 - Malinowski v. Commissioner, 71 T.C. 1120, 1125 (1979); Furnish v. Commissioner, T.C. Memo. 2001-286; Joseph v. Commissioner, T.C. M

owed under this chapter except as provided in this section." In the case of 9 Generally, a taxpayer bears the burden of proving the Commissioner's determinations incorrect. Rule 142(a)(1); Welch v. Helvering, 290 U.S. 111, 115 (1933). However, under sec. 7491(a), the burden of proof may shift to the Commissioner in certain situations. Petitioner contends that sec. 7491(a) requires respondent to bear the burden of proof.. We need not decide this issue because our findings and analysis in this cas

6 (9th Cir. 1988), affg. Dister v. Commissioner, T.C. Memo. 1987-217; Gale v. Commissioner, T.C. Memo. 2002-54. In such cases, taxpayers have a duty to reasonably inquire into the 5 Petitioners contend that respondent bears the burden of proof under sec. 7491(a). We need not decide which party bears the burden of proof because the outcome in this case does not depend on the burden of proof. - 13 - validity of the tax benefits. See Zmuda v. Commissioner, 731 F.2d 1417, 1422-1423 (9th Cir. 1984),

7491(a) was added to the Code by the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3001(c), 112 Stat. 727, effective for court proceedings arising from examinations commencing after July 22, 1998. Sec. 7491(a)(1) provides that the burden of proof shifts to the Commissioner in specified circumstances. We n

se Advance Leasing's financial situation improved dramatically from 1996 to 1997. Advance Leasing reported $29,663 of taxable income before net operating loss 6 The estate contends that the burden of proof in this case is shifted to respondent under sec. 7491(a). We need not decide that issue because we decide this case on the basis of the preponderance of evidence without regard to the burden of proof. - 12 - deductions on its 1997 income tax return. However, that return is not consistent with

OPINION Although respondent must have commenced respondent’s exami- nation of petitioner’s return for the year at issue after July 22, 1998, the parties do not address section 7491(a).16 In any event, we need not decide whether the burden of proof shifts to respondent under that section.

tions and to the general public that an institution meets established criteria or standards. We separately discuss whether petitioners may deduct $175 of this amount they paid for Mishna classes. See Opinion par. A-5, below. Petitioners contend that sec. 7491(a) requires respondent to bear the burden of proof on all factual issues in the case. We need not decide the point because our findings and analysis in this case do not depend on which party bears the burden of proof. The record also sugges

that a property right for which their corporation claimed no deduction and which can be used only in the future does not result in a constructive dividend to them in 1999.2 2 We need not decide whether the burden of proof shifts to respondent under sec. 7491(a) because the facts are not in dispute and the issue is one of law. See sec. 7491(a). - 5 - We disagree. A shareholder receives a constructive dividend to the extent of the corporation’s earnings and profits if the corporation pays a person

7491(a)(1) and (2)(B). In this case, we need not decide whether petitioners have complied with the requirements of section 7491 because the resolution of this issue does not depend on which party has the burden of proof. We resolve this issue on the preponderance of the evidence in the record. Under the terms of the termination agreement, peti

OPINION We presume that respondent’s examination of petitioners’ 1998 return, petitioners’ amended 1998 return, and petitioners’ 1999 return began after July 22, 1998, and that section 7491(a) is applicable in the instant case.

he law. In reaching our holding herein, we have considered all arguments made, and, to the extent not mentioned above, we conclude that they are irrelevant or without merit. 3 We need not decide whether the burden of proof shifts to respondent under sec. 7491(a) because the facts are not in dispute and the issue is one of law. - 5 - To reflect the foregoing, Decision will be entered for respondent.

80F(d)(4); Sanford v. Commissioner, 50 T.C. 823, 827 (1968), affd. 412 F.2d 201 (2d Cir. 1969); sec. 1.280F- 6T(b), Temporary Income Tax Regs., 49 Fed. Reg. 42713 (Oct. 24, 2 We need not decide whether the burden of proof shifts to respondent under sec. 7491(a) because petitioner failed to comply with respondent’s reasonable requests for information. In any event, we decide this case on the basis of the preponderance of evidence on the record. 3 Unless otherwise indicated, section references are

ed under Rule 155. Section references are to the Internal Revenue Code in effect for the applicable year. Rule references are to the Tax Court Rules of Practice and Procedure. We need not decide whether the burden of proof shifts to respondent under sec. 7491(a), because the issue is one of law. See sec. 7491(a). Respondent concedes that these expenses are unreimbursed employee expenses for 2000. Sec. 62 provides, in pertinent part: SEC. 62. ADJUSTED GROSS INCOME DEFINED. (a) General Rule. — For

It seems likely respondent’s examination of petitioners’ 1997 return and amended 1997 return began after July 22, 1998, and that section 7491(a) would apply to the case at hand.

Accordingly, we need not decide whether - 5 - section 7491(a)(1) is applicable in this case.

Moreover, as discussed in greater detail below, although petitioners have introduced evidence substantiating some losses–- and respondent has conceded some losses--petitioners have failed to introduce credible evidence, as required by section 7491(a), 7(...continued) petitioners fail this requirement, having failed to produce any documents to substantiate their gambling winnings and losses after receiving from respondent a December 1998 letter regarding the examination of their 1996 Federal tax

oner Petitioner, a dentist, resided in Los Angeles, California, when he filed the petition. Traci Rae Pontello and Wendi Lyn Iannaccone are petitioner’s adult daughters, and Frank James Pontello is petitioner’s son-in-law. 1 Petitioner contends that sec. 7491(a) requires respondent to bear the burden of proof on all issues in the case. We need not decide petitioner’s contention because our findings and analysis do not depend on which party bears the burden of proof. - 3 - B. Petitioner’s Family

n 170(f)(8) and section 1.170A-13(f)(6), Income Tax Regs. Thus, petitioners may not deduct their contributions to NHF of $36,285 in 1997 and $36,000 in 1998. To reflect the foregoing, Decision will be entered for respondent. Petitioners contend that sec. 7491(a) requires respondent to bear the burden of proof on all issues in the case. We need not decide petitioners’ contention because our findings and analysis do not depend on which party bears the burden of proof. Petitioners possess rights in

n question are not deductible.3 Petitioner retired from his position as a drilling manager for Atlantic Richfield during 1987 and after that time was paid on one occasion during 1991 for consulting in connection with his 3 We need not decide whether sec. 7491(a) affects the placement of the burden of proof here, because we resolve the issues on the basis of a preponderance of the evidence in the record. - 6 - preretirement expertise. Other than the $7,710 consulting fee earned during 1991, petit

. 374, 386 (2001). Respondent determined that sections 162 and 274 do not entitle petitioner to deduct its expenses related to the Centurion. In order to prevail, petitioner must prove that determination wrong.5 Rule 142(a)(1); Welch v. Helvering, 5 Sec. 7491(a) was added to the Code by the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3001(c), 112 Stat. 727, effective for court proceedings arising from examinations commencing after July 22, 1998. (continue

with petitioner’s contention that the circumstances in this case are similar to those in Selfe. 2 Petitioners do not contend that respondent bears the burden of proof under sec. 7491. Taxpayers bear the burden of proving that the requirements under sec. 7491(a) are met. H. Conf. Rept. 105-599, at 239 (1998), 1998-3 C.B. 747, 993; S. Rept. 105-174, at 45 (1998), 1998-3 C.B. 537, 581. - 6 - The taxpayer in Selfe borrowed funds in her individual capacity and pledged her personal assets as collater

As one exception to this rule, section 7491(a) places upon the Commissioner the burden of proof with respect to any factual issue relating to liability for tax if the taxpayer maintained adequate records, satisfied applicable substantiation requirements, cooperated with respondent, and introduced during the court proceeding credible evidence on the factual issue.

Under section 7491(a), the burden ofproofmay shift to the Commissioner ifthe taxpayerproduces credible evidence with respect to any relevant factual issue and meets other requirements. The estate has not argued or established that section 7491(a) applies, and therefore the burden ofproofremains on the estate. II. The Private Annuity Transaction A. Federa

Section 7491(a) provides that the burden of proof may shift to the Commissioner as to a relevant factual issue if the taxpayer introduces “credible evidence” and “has maintained all records required under this title” with respect to the relevant factual issue, among other requirements. See § 7491(a)(1), (2)(B). Petitioner has not sought to shift th

7 Section 7491(a) provides that the burden of proof may shift to the Commissioner on a factual issue if, among other requirements, the taxpayer “introduces credible evidence with respect to [that] issue” and “has maintained all records required under this title and has cooperated with reasonable requests by the [Commissioner] for witnesses, informati

In order to shift the burden of proof as to a factual issue under section 7491(a), taxpayers must, among other things, introduce credible evidence as to the factual issue and maintain required records.

Petitioners contend that they meet the requirements of section 7491(a) to shift the burden of proof to respondent. Conversely, respondent contends the burden has not shifted because petitioners failed to introduce credible evidence necessary for the burden to shift. The resolution of these issues is decided on the preponderance of evi

ct to such issue." See Higbee v. Commissioner, 116 T.C. 438, 442 (2001). Petitioners have neither claimed nor shown that they have presented credible evidence sufficient to shift the burden ofproofto respondent as to any relevant factual issue under section 7491(a). - 12 - [*12] In cases involving failure to report income, the U.S. Court ofAppeals for the Ninth Circuit, to which any appeal in these cases would ordinarily lie, see sec. 7482(b)(1)(A) and (B), has held that the Commissioner must in

Petitioners allege that the burden of proofshould shift to respondent under section 7491(a) because they introduced "credible evidence, in the form ofreceipts, that clearly documents all expenses, with respect to the issues in this case", "substantiated all items with respect to all such expenses", and "kept all meetings with Respondent[] and fully Cooperated with production and examination ofDocument[s] and other request[

Petitioner contends that he meets the requirements ofsection 7491(a) and thus the burden ofproofshifts to respondent regarding the fair market value ofhis gifts.

BAI would normally have the burden ofproving its entitlement to the disputed deductions, see Rule 142(a), but at trial we shifted that burden to the Commissioner under section 7491(a) because we found that BAI had cooperated with the Commissioner's requests for information on this issue and had produced credible evidence to substantiate its deductions.

ments, and meetings. Sec. 7491(a)(2). In addition, for the burden to shift, the taxpayer must introduce credible evidence with respect to the issue. See sec. 7491(a)(1). A taxpayerbears the burden ofproving that he or she has met the requirements of section 7491(a). See H.R. Conf. Rept. No. 105-599, at 239 (1998), 1998-3 C.B. 747, 993; S. Rept. No. 105-174, at 45 (1998), 1998-3 C.B. 537, 581. Petitioner does not contend that she met the requirements ofsection 7491(a) for shifting the - 6 - burde

However, under section 7491(a), the burden ofproofmay shift to the Commissioner ifthe taxpayers comply with all substantiation requirements in the Internal Revenue Code, introduce credible evidence with respect to factual issues relevant to ascertaining their liability, and cooperate with reasonable requests by the Commissioner for information, documents, and mee

Section 7491(a) shifts the burden ofproofto the Commissioner where the taxpayer has presented credible evidence with respect to any factual issue relevant to ascertaining the correct tax liability ofthe taxpayer. Section 7491(a) also requires that the taxpayerhave substantiated all appropriate items, maintained records as required under the Code, a

BAI would normally have the burden ofproving its entitlement to the disputed deductions, see Rule 142(a), but at trial we shifted that burden to the Commissioner under section 7491(a) because we found that BAI had cooperated with the Commissioner's requests for information on this issue and had produced credible evidence to substantiate its deductions.

Deductions are a matter oflegislative grace, and the taxpayer must prove his entitlement to any deductions claimed. INDOPCO, Inc. v. Commissioner, 503 - 5 - U.S. 79, 84 (1992). Taxpayers are obligated to maintain sufficient records to substantiate expenses underlying their claimed deductions. Sec. 6001; see also Hradesky v. Commissio

Petitioners do not contend, and the evidence does not establish, that the burden ofproofshifts to respondent under section 7491(a) as to any issue offact.

wo occasions the Court imposed a $10,000 sec. 6673(a)(1) penalty. Blair v. Commissioner, T.C. Memo. 2002-189; Blair v. Commissioner, T.C. Dkt. No. 6368-05L (Feb. 2, 2006) (order and decision); Blair v. Commissioner, T.C. Memo. 2016-215. 3Pursuant to sec. 7491(a), petitioner has the burden ofproofbecause he failed to introduce credible evidence. See Rule 142(a). - 4 - [*4] not reasonable cause. See sec. 6654. Finally, petitioner persistently asserted frivolous contentions and is therefore liable

Burden ofProof Under section 7491(a) the burden ofproofmay shift to the Commissioner if the taxpayer satisfies certain requirements.

isfies other conditions, then the burden ofproofshifts to the Commissioner. Sec. 7491(a)(1) and (2)(A) and (B). At trial petitioner conceded that he had the burden ofproof, but on briefhe argued that the burden ofproofhad shifted to respondent under section 7491(a). However, petitioner has not established that he complied with the requirements of - 12 - section 7491(a)(2)(A) and (B) to substantiate items, maintain records, and cooperate fully with respondent's reasonable requests. Therefore, the

The evidence does not establish that the burden ofproofshifts to respondent under section 7491(a) as to any issue offact.

Section 7491(a) shifts the burden ofproofto the Commissioner ifthe taxpayerproduces credible evidence on any factual issues and satisfies the requirements ofsection 7491(a)(2).° "Credible evidence is the quality ofevidence which, after critical analysis, the court would find sufficient upon which to base a decision on the issue ifno contrary eviden

Section 7491(a) shifts the burden ofproofto the Commissioner ifthe taxpayerproduces credible evidence on any factual issues and satisfies the requirements ofsection 7491(a)(2)." "Credible evidence is the quality of evidence which, after critical analysis, the court would find sufficient upon which to base a decision on the issue ifno contrary evide

The taxpayerbears the burden ofproving that the requirements ofsection 7491(a) have been met.

Section 7491(a) shifts the burden ofproofto the Commissioner ifthe taxpayerproduces credible evidence on any factual issues and satisfies the requirements ofsection 7491(a)(2)." "Credible evidence is the quality of evidence which, after critical analysis, the court would find sufficient upon which to base a decision on the issue ifno contrary evide

Nwabasili does not assert, and the record does not demonstrate, that the requirements ofsection 7491(a) have been met. Therefore, the burden ofproofremains on Nwabasili. Section 162(a) allows a deduction for expenses paid or incurred by the taxpayer in carrying on a business. The IRS concedes that Nwabasili carried on an event-promoti

7491(a); see also Higbee v. Commissioner, 116 T.C. 438, 440- 441 (2001). Petitioner does not contend that section 7491(a)(1) should shift the burden here, and the record establishes that he did not satisfy the section 7491(a)(2) 2 The term "Secretary" means "the Secretary ofthe Treasury or his delegate", sec. 7701(a)(11)(B), and the term "or h

ported dog breeding business, dependency exemption deductions for his two minor daughters, and gross income adjustments for health insurance of$24,000 and alimony of$27,900. The evidence herein does not establish that the burden of proofshifts under section 7491(a). Petitioner's documentation regarding some claimed deductions was submitted in his January 13, 2016, nine-page fax sent to respondent's counsel and filed with the Court. The first document is an invoice from Dr. Arthur James Mowery, a

Credible evidence for this purpose "is the quality ofevidence which, after critical - 11 - analysis, the court would find sufficient upon which to base a decision on the issue ifno contrary evidence were submitted". Higbee v. Commissioner, 116 T.C. 438, 442 (2001) (quoting H.R. Conf. Rept. No. 105-599, at 240-241 (1998), 1998-3 C.B.

Lizardo do not argue that the burden should shift, and they have not met the requirements under section 7491(a) for shifting the burden.

Petitioner does not contend that he met the requirements ofsection 7491(a), and the record confirms that he did not do so.

Section 7491(a), however, shifts this burden ofproofto the Commissioner on each fact issue whenever "a taxpayer introduces credible evidence with respect to * * * [the] factual issue". In support ofhis entitlement to a dependency exemption deduction for Ms. Napoleone, petitioner has produced and respondent has stipulated into evidence a document en

tiation ofany item and cooperation with the Govemment's requests for witnesses, documents, other information, and meetings. Sec. 7491(a)(2); see also Rule 142(a)(2). The taxpayerbears the burden ofproving that he or she has niet the requirements of section 7491(a). Rolfs v. Commissioner, 135 T.C. 471, 483 (2010), aff'd, 668 F.3d 888 (7th Cir. 2012). It is unclear from petitioner's briefs whether he has asserted burden shifting under section 7491(a). However, petitioner has not demonstrated that

3), aff'g Davies v. Commissioner, T.C. Memo. 1981-438. 5Roberts v. Commissioner, 62 T.C. 834, 835-837 (1974); Taylorv. Commissioner, T.C. Memo. 2006-67. - 6 - [*6] ascertaining the taxpayer's liability, the burden may shift to the Commissionerunder section 7491(a). Credible evidence is "'evidence which, after critical analysis, the court would find sufficientupon which to base a decision on the issue ifno contrary evidence were submitted'".6 However, the burden will shift only ifthe taxpayerhas

he FPAAs. We therefore havejurisdiction to determine whether the payments were guaranteed payments for services and whether the accuracy- related penalty applies.7 II. Burden ofProof We now consider whetherthe burden ofproofshifts to respondentunder section 7491(a). The Commissioner's adjustments in an FPAA are generally presumed correct, and a party challenging an FPAA has the burden ofproving that the Commissioner's adjustments are in error. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (

- 20 - [*20] requirements ofsection 7491(a) have been satisfied.

The burden ofproofwith respect to a factual issue may be placed on the Commissioner under section 7491(a) ifthe taxpayer introduces credible evidence regarding that issue and establishes that the taxpayer complied with the requirements to substantiate items, maintain records, and fully cooperate with the Commissioner's reasonable requests.

7491(a); see Higbee v. Commissioner, 116 T.C. 438, 440-441 (2001). As shown below, petitioner did not introduce credible evidence regarding the tax character ofthe income in issue that merited a shifting ofthat burden to respondent. After consideration ofsections 6201(d) and 7491(a), the burden ofproofremains with petitioner. Gain from the sal

he FPAAs. We therefore havejurisdiction to determine whether the payments were guaranteed payments for services and whether the accuracy- related penalty applies.7 II. Burden ofProof We now consider whetherthe burden ofproofshifts to respondentunder section 7491(a). The Commissioner's adjustments in an FPAA are generally presumed correct, and a party challenging an FPAA has the burden ofproving that the Commissioner's adjustments are in error. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (

nt's requests for witnesses, documents, other information, and meetings. Sec. 7491(a)(2); see also Rule 142(a)(2); Higbee v. Commissioner, 116 T.C. 438, 440-441 (2001). The taxpayerbears the burden ofproving that he or she has met the requirements ofsection 7491(a). Rolfs v. Commissioner, 135 T.C. 471, 483 (2010), aff'd, 668 F.3d 888 (7th Cir. 2012). Because we decide the factual issues in the instant case on the preponderance ofthe evidence, the allocation ofthe burden ofproofis immaterial. See

7491(a); Snyder v. Commissioner, T.C. Memo. 2001-255. Petitioner has not complied with the substantiation requirements ofsection 7491(a). See Higbee v. Commissioner, 116 T.C. 438 (2001). Nor has petitioner cooperated in this matter such that the burden of production would shift to respondentto produce information. See sec. 6201(d). The burden

In an exceptionto the general rule, section 7491(a) imposes the burden ofproofon the IRS with respectto a given factual issue where a taxpayer (1) introduces credible evidence with respect to that issue, (2) meets all applicable substantiation requirements, (3) complies with all recordkeeping requirements, and (4) cooperates with any reasonable requests for information.

The taxpayer bears the burden ofproving that the requirements ofsection 7491(a) have been met.

e STN.Com stock it held on the valuation date was $4.3 million. Respondentnow asserts that the fair market value ofthe stock was $26,341,030. I. Burden ofProof During the trial the estate filed a motion to shift the burden ofproofto respondent under section 7491(a). In an order entered on December 6, 2012, the Court foundthat the estate's substantially inconsistent positions regardingthe valuation ofthe STN.Com stock demonstrated a failure to meetthe requirements ofsection 7491(a)(2) andtherefor

Accordingly, petitioners bear the burden ofproving that respondent's determinationis incorrect, unless they demonstra e that the burden ofproofshould shift to respondent under section 7491(a)., Howe er, the record shows that petitioners did not meet the requirements ofsection 7491(a)(2).

7491(a)(1.); see also Higbee v. Commissioner, 116 T.C. 438, 441 (2001). Credible evidence is evidence the court would find sufficientupon which to base a decision on the issue in favor ofthe taxpayer ifno contrary evidence were submitted. Reridall v. Commissioner, T.C. Memo. 2006-174, aff'd, - 12 - [*12] 535 F.3d 1221 (10th Cir. 2008); see Hi

Under section 7491(a), the burden ofproofmay shift to the Commissioner if the taxpayer produces credible evidence.with respect to any relevant factual issue and satisfies the requirements ofsection 7491(a)(2). Section 7491(a)(2)requires a taxpayer to demonstrate that he (1) complied with requirements under the.Code to substantiate any item, (2) maintaine

Section 7491(a) may, in certain limited circumstances, operate to shift the burden ofproof to the Commissionerwith respect to any factual issue relevant to determining the 20Because petitioners John J. and Charla Crimi's 2005 tax year is not before the Court, we do not include them as claiming entitlement to a refund for 2005. - 39 - [*39] taxpaye

7491(a); see also Higbee v. Commissioner, 116 T.C. 438, 440- 441 (2001). In addition, ifthe Commissioner raises a new issue or seeks an 16The term "Secretary" means "the Secretary ofthe Treasury or his delegate", sec. 7701(a)(11)(B), and the term "or his delegate" means "any officer, employee, or agency ofthe Treasury Department duly authorize

We find that petitioners have not shown that they meet the specifications ofsection 7491(a) to shift the burden ofproofto respondent as to the remaining relevant factual issues.

7491(a); see also Higbee v. Commissioner, 116 T.C. 438, 440- 441 (2001). Petitioner does not contend that section 7491(a)(1) should shift the burden here, and the record establishes that he did not satisfy the section 7491(a)(2) requirements. Accordingly, petitioner bears the urden ofproofwith respect to all disputed factual issues. . . . . II

933). As discussed in detail below, petitioners did not comply with the Code's substantiation requirements and have not maintained all required records. Therefore, the burden ofproofas to any relevant factual issue does not shift to respondent under section 7491(a). See sec. 7491(a)(1) and (2); Higbee v. Commissioner, 116 T.C. 438, 442-443 (2001). Deductions are a matter oflegislative grace, and the taxpayer generally bears the burden ofproving entitlementto any deduction claimed. Rule 142(a); I

Burden ofProof The Commissioner's determinations in the notice ofdeficiency are generally presumed correct, and taxpayers bear the burden ofproving otherwise.5 The burden may shift to the Commissioner under section 7491(a) ifthe taxpayer has complied with the necessary substantiation requirements and has maintained all records and cooperated with reasonable requests by the Commissioner for witnesses, information, documents, meetings, and interviews.

Under section 7491(a), the burden ofproofmay shift to the Commissioner ifthe taxpayer produces credible evidence with respect to any relevant factual issue and satisfies the requirements ofsection 7491(a)(2). Section 7491(a)(2) requires a taxpayer to demonstrate that he (1) complied with requirements under the Code to substantiate any item, (2) maintaine

However, section 7491(a)(1) and (2) shifts the burden ofproof to the Commissioner as to any factual issue relevant to a taxpayer's liability for tax if(1) the taxpayer introduces credible evidence with respect to such issue, and (2) the taxpayer satisfies certain other conditions, including cooperation with the Government's requests for witnesses, informati

Petitioners do not argue that the burden of proof shifts to respondent pursuant to section 7491(a) for any other issue or year, nor have they shown that the threshold requirements of section 7491(a) have been met for any of the other determinations at issue.

7491(a) the burden of proof shifts to the Commissioner if the taxpayer produced credible evidence to support the deduction or position, the taxpayer complied with the substantiation requirements, and the taxpayer cooperated with the Secretary with regard to all reasonable requests for. information. Petitioner does not contend that sec. 7491(a)

However, section 7491(a) shifts the burden of proof to the Commissioner in certain situations if the taxpayer raises the issue, introduces credible evidence with respect to any factual issue relevant to ascertaining the proper tax liability, and demonstrates compliance with the applicable requirements of section 7491(a)(2).

7491(a); Snyder v. Commissioner, T.C. Memo. 2001-255 (citing H. R. Conf. Rept. No. 105-599, at 240-241 (1998), 1998-3 C.B. 747, 994-995). Respondent challengedthe claimed charitable contributions and medical and dental expenses in the deficiency notice. Petitioner has not complied with the substantiation requirements ofsection 7491(a) with res

The taxpayer bears the burden of proving that all ofthe section 7491(a) requirements have een satisfied.

The taxpayer bears the burden ofproving that all ofthe section 7491(a) requirements have been satisfied.

Petitionérs argue that the burden ofproofshould shift to respondent under section 7491(a) because theyproduced credible evidence and satisfied the requirements ofsection 7491(a)(2).7 Respondent concedes that petitioners cooperated wit the Secretary with regard to all reasonable requests for i ' information.

Under section 7491(a), ifth taxpayerproduces credible evidence with respect to any factual issue relevant to ascertaining the taxpayer's liability for tax and meets other requirements, the burden ofproofrests on the IRS as to that factual issue. The Weatherlys have no established their compliance with the requirements ofsection 7491(a). They bear the bur

7491(a); see also Higbee v. Commissioner, 116 T.C. 438, 440- 441 (2001). Petitioner does not contend that section 7491(a)(1) applies, and the record does not permit us to conclude that she satisfied the section 7491(a)(2) requirements. Accordingly, petitioner bears the burden ofproving that respondent's determinations are erroneous. II. Adjust

Petitioner does not argue that the burden ofproofshifts to respondent pursuant to section 7491(a), nor has she shown that the threshold requirements ofsection 7491(a) have been met for any ofthe determinations at issue.

- 14 - [*14] Petitioners argue that pursuantto section 7491(a) the burden ofproofhas shifted to respondent and that uncertainty on any issue in this case should be resolved in their favor.

Section 7491(a) therefore applies and shifts the burden of proofto respondent with respectto Rukan/Wheeler's cash contribution. B. Whetherthe Cash Contributions Were "Contributions or Giftà" Under Section 170(c) A cash paymentto a qualified organizationmay be deductible under section 170 ifthe payment is a "contribution or gift" under section 170(c

The burden ofproofmay shift in some cases to the Commissioner under section 7491(a) only iftaxpayers introduce credible evidence at trial to support their position, and only ifthey can establish that they: (1) complied with all substantiation requirements under the provisions ofthe Code and the regulations; (2) maintained books and records required by the Code and the regulations; and (3) cooperated with reasonable

Section 7491(a) (1) imposes the burden of persuasion on the IRS if the taxpayer satisfies the conditions of section 7491(a) (2) and introduces credible evidence on factual issues relevant to the taxpayer's liability for a tax under subtitle A or B of.the Internal Revenue Code. A taxpayer bears the burden of proving that the conditions in section 74

(cid:0)570hbeu'rden ofproofwith resþect to a factual issue may be placed on the Commissioner under section 7491(a) ifthe taxpayer introduces credible evidence regarding that issue and establishes that the taxpayér complied with the requirements to substantiate items, maintain records, and fully booperate with the Commissioner's reasonable requests.

The burden ofproofwith respect to a factual issue may be placed on the Commissioner under section 7491(a) ifthe taxpayer introduces credible evidence - 4 - regarding that issue and establishes that the taxpayer complied with the requirements to substantiate items, maintain records, and fully cooperate with the Commissioner's reasonable requests.

7491(a); see also Hiabee v. Commissioner, 116 T.C. 438, 440-441 (2001). Petitioner does not contend that section 7491(a)(1) applies, and the record does notpermit us to conclude that he satisfied the requirements ofsection 7491(a)(2). Accordingly, petitioner bears the burden ofproving that he properly claimed the FTHBC on his return. 7The term

Petitionerhas not argued that section 7491(a) applies in this case, and the record does not support a conclusion that the requirements ofsection 7491(a) have been met.

However, pursuant to section 7491(a), in certain circumstances the burden ofproofon factual issues that affect the taxpayer's tax liability "for any tax imposed by subtitle A or B" m y shift to the Commissioner.

Under section 7491(a), if the taxpayerproduces credible evidence.with respect to any factual issue relevant to ascertaining the taxpayer's liability for tax and meets other requirements, the burden ofproofshifts from the taxpayerto the Commissioner as to that factual issue. HP has not alleged that section 7491(a) applies or established its compliance wit

ontention thë.t petitioners failed to satisfy the requirements of section 17C (f) (11). Accordingly, An appropriate order will be issued granting respondent's motion for partial summary judgment. s(...continued) 142(a) (1). In certain circumstances, sec. 7491(a) may operate to shift to the Commissioner the burden of proof with respect to any factual issue relevant to ascertaining the taxpayer's tax liability. As one precondition for shifting the burden of proof, however, the taxpayer must have c

However, under section 7491(a), if ·the taxpayer produces credible evidence with respect to any factual issue relevant to ascertaining the taxpayer's liability for tax and meets other requirements, the burden of proof shifts from·the taxpayer to the Commissioner as to that factual issue.

Section 7491(a) (1) applies only if the taxpayer complies with the relevant substantiation requirements in the Code, maintains all required records, and cooperates with the Commissioner with respect to witnesses, information, documents, meetings, and interviews. Sec. 7491(a) (2) (A) and (B). The taxpayer bears the burden of provin

Petitioners moved for a section 7491(a) (1) burden shift in their pretrial memorandum.

See Rule 142 (a) .2 However, section 7491(a) shifts t he burden to the Commissioner when a taxpayer introduces 2 U less otherwise indicated, all section referencès are to the Internal Revenue Code in Áffect for the date of Adelina Van's death, a id Rule references ar to the Tax Court ,Rules of Practice and Procedure .

7491(a); see ralso Higbee v. Commissioner, 116 T.C. 438, 440-441 (2001). Petitioner does not contend that section 7491(a) (1) applies, and the record does not permit us to conclude that petitioner satisfied the requirements of section 7491(a) (2). Accordingly, petitioner bears the burden of pro ing that he.properly deducted the cash charitable

Section 7491(a) (1) provides that, subject to certain limitations, where a taxpayer introduces credible evidence with respect to a factual issue relevant to ascertaining the taxpayer's tax liability, the burden of proof shifts to the Commissioner with respect to that issue. Credible evidence is evidence the Court would find sufficient upon which to

Section 7491(a) (1) shifts the burden of proof to the IRS if the taxpayer satisfies the conditions in section 7491(a) (2) and introduces credible evidence on factual issues relevant to the taxpayer's liability for a tax under subtitle A or B. A taxpayer bears the burden of proving that the conditions in section 7491(a) (2) are satisfied. See Higbee

the activity may appreciate in value; (5) the success of the taxpayer in carrying on other similar or 4Petitioners contend that they have met the prerequisites for a shift in the burden of proof to respondent with respect to all factual issues under sec. 7491(a). For the burden of proof to shift to respondent, petitioners are required to cooperate with all reasonable requests for documents. See sec. 7491(a) (2). Petitioners did not produce the farming ledger or any other documents respondent req

umed correct, and generally taxpayers bear the burden of proving otherwise. Rule 142(a) (1); Welch v. Helvering, 290 U.S., 111, 115 (1933). In some cases the burden of proof with respect to relevant factual issues may shift to the Commissioner under section 7491(a). Petitioners argue that the provisions of section 7491 apply and that the burden of proof is on respondent. .Because.petitioners have not met all the requirements of section 7491(a) (2), the burden of proof does not shift to responden

However, pursuant to section 7491(a), in ce tain circumstances, the burden of proof on factual issues that affect the taxpayer's tax liability "for any tax imposed by subtitle A or B" may shift to the Commissioner.

nay marked “paid in full”, along with a letter confirming that the $70,300 payment had fulfilled Vinay’s obligation to the Foundation. OPINION Burden of Proof Petitioners argue that respondent bears the burden of proof in this proceeding pursuant to section 7491(a). However, the burden of proof has no practical consequence in this case, as there is no evidentiary tie. Our findings with respect to all factual issues are based upon a preponderance of the evidence. See Blodgett v. Commissioner, 394

ustments in the notice of deficiency are computational, and their resolution will depend upon our resolution of the bad debt deduction issue. Under certain circumstances the burden can shift to respondent with respect to factual disputes pursuant to section 7491(a). However, Mr. Dagres does not contend that the burden has shifted under this section. The amended answer also asserted an increased deficiency due to unreported interest income in 2003. This additional deficiency is clearly a new matt

Under section 7491(a) (1), the burden of proof shifts 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 and the taxpayer has satisfied certain conditions. Accordingly, petitioners argue that the burden of proof should be placedeupon resp

ule 142;, New Colonial Ice Co . v. Helvering, 292 U.S . .435,e 440 (1934)., 'Pursuant. to section 7491 (a) ,' ,;the ;burden. of .proof as to- factual matters shifts-to the Commissioner under-certai n circumstances . Mrs . Ajah neither :alleged that .section 7491(a) . applies nor`established,her compliance, with . the. substantiation and recordkeepingrequirements . See sec . 7491(a)(2)(A) .and (B) . Mrs . Ajah, .therefore, bears the burden of proof . See"Rule 142 (a) .. Section 469 Losses From Re

However,'pursuant to¯ section 7491(a) (1), the burden of proof as-to.a factual issue that affects the taxpayer's tax liability'may be shifted to the Commissioner.

7491(a).(1), the burden of proof on factual issues that affect the taxpayer's tax liability may þhift to the • Commissioner where the "taxpayer introduces chedible evidence with respect to * * * such issue,." The burden will shift only if the taxpayer has, inter alia, complied with aþplicable substantiation requirements and "cooperated with re

7491(a)(2)(A),and .(B The taxpayer bears .the burden of proving compliance .with the , conditions of section 7491(a) (2) .:(A) and (B) .

We reject categorically Smith's assertion that he has-satisfied the conditions for shifting to respondent the burden of proof under section 7491(a), because petitioners have not introduced credible evidence,' did not substantiate deductions, did not maintain required records, and did not cooperate with reasonable requests for information and documents.

of In general, determination of a taxpayer's tax liability is presumed correct, and the taxpayer bears the burden of proving that the Commissioner's determination is improper. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (19.33)." "Pursuant to sec. 7491(a), the burden of proof on factual issues that affect the taxpayer's tax liability may shift to the Commissioner where the "taxpayer.introduces credible evidence with respect to * * * such issue.." The burden will shift only if the taxpayer

Under section 7491(a) (1), the burden of proof shifts 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 and the taxpayer has satisfied certain conditions. Accordingly, petitioners argue that the burden of proof should be placedeupon resp

Accordingly, we conclude that petitioners have not introduced credible evidenc e for purposes of section 7491(a), and the burden of proo f therefore remains-with petitioners .

OPINION Burden of Proof Under section 7491(a), the burden of proof on factual issues may shift from a taxpayer to respondent where a taxpayer complied with substantiation requirements, maintained records, cooperated with respondent's reasonable requests for witnesses, information, documents, meetings, and interviews, and introduced credible evidence .

Although section 7491(a) may shift the burden of_proof to the Commissioner, that section is not applicable where, as here, a taxpayer has failed to satisfy the recordkeeping and substantiation requirements of the Code .

Burden of Proof The parties disagree as to whether the-burden of proof shifted to respondent under section 7491(a) .3 The Commissioner's determinations in the deficiency notice are generally presumed correct, and the taxpayer has the burden of proving that the „Commissioner's-determinations are in error .

liability of the taxpayer and (2) comply with the applicable requirements of section 7491(a) (2) .' Although section 7491(a) does snot define the term "credible evidence", the legislative .

Additionally, section 7491(a) requires that the taxpayer cooperate with reasonable requests by the Commissioner fo r "witnesses,.

However, section 7491(a) may in specific circumstances place the burden on the Commissioner with regard to any factual issue relating to the taxpayer's liability for tax if the taxpayer produces credible evidence with respect to that issue and meets the requirements of section 7491(a)(2) .

s of his business activities, that he is not entitled to reconstruct records which never existed, and that the documents he introduced are not sufficient to prove his claimed business expenses . The f - 9 - burden does not shift to respondent under section 7491(a) . Petitioners, therefore, retain the bu rElen of proving they are entitled to the deductions claimed . NEOPCO, Inc . v. Commissioner, 503 U.S . 79, 84 (1992) . III . Underlying Tax Liability A . Schedule C Deductions 1 . Legal Principl

In respondent's pretrial memorandum, respondent referred-to section 7491(a) and asserted that petitioner had failed to, produce any evidence that he was an employee and not an .independent contractor of Boyle,Energy.

onomic substance; 2) the assignment of income doctrine applies; or 3) the grantor trust provisions apply. We agree with respondent on the first theory. Burden of Proof Petitioners bear the burden of proof in these cases, and it has not shifted under section 7491(a). See Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Petitioners did not cooperate during IRS examinations but obstructed them by refusing to produce certain documents or to answer questions. See sec. 7491(a)(2)(B). Petitio

The burden of proof may shift to the Commissioner under section 7491(a) with respect to a factual issue relevant to the liability of the taxpayer for tax if the taxpayer introduces credible evidence regarding the issue and establishes compliance with the requirements of section 7491(a)(2)(A) and (B) by substantiating items, maintaining required records, and fully cooperating with the Secretary's reasona

However, section 7491(a) may in specific circumstances place the burden on the Commissioner with regard to any factual issue relating to the taxpayers' liability for tax if the taxpayers produce credible evidence with respect to that issue and meet the requirements found in section 7491(a)(2) .

However, section 7491(a) may in specific, circumstances place the burden on the Commissioner with regard to any factual issue relating to the taxpayer's liability for, tax if the taxpayer produces credible evidence with respect to that issue and meets' the requirements found in section 7491(a)(2) .

Furthermore, section 6201(d), as pertinent here, provides that in any court proceeding, if a taxpayer asserts a reasonable dispute with respect to any item of income reported on an information return (such as a Form 1099 filed by a third party) and the taxpayer has fully cooperated with the Internal Revenue Service, the Commissioner

urden of proving error in the determi- nations in the notices for petitioner’s respective taxable years 1998 and 1999 that remain at issue, see Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933), unless that burden shifts to respondent under section 7491(a). The parties disagree over whether the burden of proof with respect to the deficiency determinations in the respective notices shifts to respondent under that section.14 On the record before us, we find that 13Respondent showed in the

vely, and additions to tax under section SERVED MAR 1 2 2008 - 2 - 6651 (a)(1)' of $205,028 .25 and $592 .50, respectively, for 1997 and 1999 . After concessions,2 the issues for decision are : (1) Whether respondent bears the burden of proof under section 7491(a) . We hold that respondent does not ; (2) whether petitioner Joseph Dunne was a shareholder of FRC International, Inc . (FRC), in 1997 and whether petitioners must pay income tax on FRC's income under section 1366 . We hold that Mr . Du

The burden of proof with respect to the deficiency respondent determined remains with petitioner because he has neither taken a position as to whether the burden should be shifted to respondent nor established that he has complied wit h the requirements of section 7491(a) . 4 3( . . .continued) that petitioner' s business was a sole

However, petitioners contend that section 7491(a) and Rule 142(a) are applicable with respect to the increases in the deficiencies pleaded in respondent’s answer.

However, pursuant to section 7491(a)(1), the burden of proof on factual issues that affect the taxpayer's tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such [factual] issue" .

Petitioner has not claimed entitlement to a shift in the burden of proof under section 7491(a); she would in any event not be eligible for the benefits of that section in light of her failure to cooperate with reasonable requests of respondent for information and other matters respecting this case.

The Hunters have neither argued that section 7491(a) applies nor established that they complied with the requirements of section 7491(a)(2). The Hunters therefore bear the burden of proof. Section 55 imposes, in addition to all other taxes imposed by subtitle A, an AMT on noncorporate taxpayers. The - 14 - determination of a noncorpo

However, a taxpayer can shift the burden of proof to the Commissioner under section 7491(a) if the taxpayer satisfies the requirements of section 7491(a)(2) .10 Because the record does not support a finding that In Touch or its TMP maintained required records and substantiated the items claimed on its 2000 return, we conclude that petitioner did not satisfy the requirements of section 7491(a) .

Although petitioners claimed that section 7491(a) applies, they failed to introduce sufficient evidence to shift the burden to respondent .

rden of proof or the effect of a failure of proof . Rule 122(b) ; Borchers v. Commissioner, 95 T .C . 82, 91 (1990), affd . 943 F .2d 22 (8th Cir . 1991) . The parties disagree over whether the burden of proof in this case shifts to respondent under section 7491(a) . In order for the burden of proof to shift to the Commissioner of Internal Revenue under that section, the taxpayer must (1) provide credi- ble evidence with respect to any factual issue relevant to - 13 - determining the tax liabili

Section 7491(a) provides for the burden of proof on respondent if the taxpayer introduces credible evidence with respect to any factual issue relevant to ascertain her liability, has complied with substantiation requirements , has maintained all records required, and has cooperated with reasonable requests for witnesses, information, documents, mee

- 7 - Section 7491(a) places the burden of proof on the Commissioner as to any issue upon which the taxpayer introduces credible evidence and which is relevant to the taxpayer's tax liability . However, for the burden of proof to be placed on the Commissioner, the taxpayer must comply with the substantiation and record-keeping requirements of the Interna

Section 7491(a) provides for the burden of proof on respondent if the taxpayer introduces credible evidence with respect to any factual issue relevant to ascertain her liability, has complied with substantiation requirements, has maintained all records required, and has cooperated with reasonable requests for witnesses, information, documents, meet

However , pursuant to section 7491(a)(1), the burden of proof on factual issues that affect the taxpayer' s tax liability may be shifted to the Commissioner where the "taxpayer introduces credible evidence with respect to * * * such [factual] issue" .

However, pursuant to section 7491(a), the burden of proof on factual issues that affect the taxpayer’s tax liability may be shifted to the Commissioner where the “taxpayer introduces credible evidence with respect to * * * such issue”.

ensive . Mr . Kramer understood that Zane had a cattle breeding activity separate from the dairy operation . OPINION Burden of Proof Petitioners, for the first time on brief, raise the issue of whether the burden of proof shifted to respondent under section 7491(a) . Under that section the burden of proof may shift to the - 28 - Commissioner with respect to a factual issue affecting the taxpayer's liability for tax where the taxpayer introduces credible evidence with respect to such a factual is

ies disagree over whether the burden of proof in 'The record does not disclose the capacity in which or the method by which Mr . Eyler paid the $5,066 of premiums for Mr . Eyler's Wellmark health policy . - 6 - this case shifts to respondent under section 7491(a) . In order for the burden of proof to shift to the Commissioner of Internal Revenue under that section, the taxpayer must (1) provide credi- ble evidence with respect to any factual issue relevant t o determining the tax liability of th

The Hunters have neither argued that section 7491(a) applies nor established that they complied with the requirements of section 7491 (a)(2) .

a minimal factual foundation."). If the Commissioner introduces some evidence that the taxpayer received unreported income, the burden shifts to the taxpayer to show by a preponderance of the evidence that the deficiency was arbitrary 3 Pursuant to sec. 7491(a), the burden of proof as to factual matters affecting liability for tax shifts to respondent under certain circumstances. Petitioner has neither alleged that sec. 7491(a) applies nor established his compliance with the requirements of sec.

ibits annexed thereto, are so found and made part hereof. Petitioners resided at Katy, Texas, at the time the petition was filed. Carlos H. Gonzalez (petitioner) is a senior petroleum engineer for Conoco, Inc. (Conoco), a major oil company in 2Under sec. 7491(a), where a taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the liability of the taxpayer, the burden of proof shifts to the Commissioner. Petitioners have not produced credible evidence with

Section 7491(a) imposes the burden of proof on respondent if the taxpayer introduces credible evidence with respect to any factual issue and complies with the requirements of section 7491(a)(2)(A) and (B) to substantiate all items at issue, maintain required records, and cooperate with reasonable requests of respondent . We find it unnecessary to d

Section 7491(a), however, provides that if a taxpayer introduces credible evidence and meets certain other prerequisites, the Commissïoner shall bear the burden of proof with respect to factual issues relating to the liability of the taxpayer for a tax imposed under subtitle A or B of the Internal Revenue Code (Code). For the burden to shift, howev

Although neither party alleges the applicability of section 7491(a), we conclude that the burden of 2We interpret the quoted language as requiring the taxpayer’s evidence pertaining to any factual issue to be evidence the Court would find sufficient upon which to base a decision on the issue in favor of the taxpayer.

Although not raised by the parties, under section 7491(a), the burden of proof with respect to any factual issue will shift to respondent if petitioner ' s testimony with respect to the issue is credible .

7491(a); Higbee v. Commissioner, 116 T.C. 438, 440-443 (2001). To shift the burden, the taxpayer must also have complied with requirements to cooperate with the Commissioner’s reasonable requests for witnesses, information, documents, meetings, and interviews. Sec. 7491(a)(2). The taxpayer has the burden to prove the requirements have been met

As one exception to this rule, section 7491(a) places upon the Commissioner the burden of proof with respect to any factual issue relating to liability for tax if the taxpayer maintained adequate records, satisfied the substantiation requirements, cooperated with the Commissioner, and introduced during the Court proceeding credible evidence with respect to the factual issue.

Although neither party alleges the applicability of section 7491(a), we conclude that the burden of proof has not shifted to respondent with respect to any of the issues in the present case.

Although neither party alleges the applicability of section 7491(a), we conclude that the burden of 3We interpret the quoted language as requiring the taxpayer’s evidence pertaining to any factual issue to be evidence the Court would find sufficient upon which to base a decision on the issue in favor of the taxpayer.

7491(a) shifts the burden of proof to the Secretary with respect to any factual issue relevant to ascertaining the tax liability of the taxpayer if the taxpayer introduces credible evidence with respect to the issue and has (1) complied with the requirements of the Internal Revenue Code to substantiate any item, and (2) maintained all records

Although neither party alleges the applicability of section 7491(a), we conclude that the burden of proof has not shifted to respondent with respect to any of the issues in this case.

nterview with Rod, as executor of the estate. Agent Puntenney's request was not satisfied. OPINION I. Burden of Proof The estate contends that the burden of proof with respect to the factual issues in this case has shifted to respondent pursuant to section 7491(a). We disagree. To be eligible for the burden-shifting benefits of section 7491(a), a taxpayer must show that the prerequisites set forth in section 7491(a)(2) have been satisfied. Allnutt v. Commissioner, T.C. Memo. 2004-239; Oatman v.

Generally, under section 7491(a)., the burden of proof.

7491(a) (1), with respect to audits commencing after July 22, 1998, the burden of proof shifts to respondent where the taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the tax liability. The burden of proof, however, does not shift where the taxpayer fails to comply with requirements for substant

Section 7491(a), however, provides that if a taxpayer introduces credible evidence and meets certain other prerequisites, the Commissioner shall bear the burden of proof with respect to factual issues relating to the liability of the taxpayer for a tax imposed under subtitle A or B of the Internal Revenue Code (Code). For the burden to shift, howev

OPINION Under section 7491(a), the burden of proof on any factual issue relevant to ascertaining the taxpayer's tax liability shifts from the taxpayer to the Commissioner if the taxpayer produces credible evidence with respect to such factual issue .

Burden of Proof Petitioners argue that, pursuant to section 7491(a), the burden of proof “has shifted to” respondent with respect to all of the factual issues.

However, the burden of proof may shift to the Commissioner under section 7491(a) if the taxpayer has produced credible evidence - 5 - relating to the tax liability at issue, has met his substantiation requirements, maintained records, and cooperated with the Secretary’s reasonable requests for documents, witnesses, and meetings.2 In this case, petitioner bears the burden of proof because he did not: (1) substan

- 21 - Section 7491(a) shifts the burden of proof to the Commissioner when the taxpayer has satisfied certain requirements. Section 7491 is effective with respect to court proceedings arising in connection with examinations commencing after July 22, 1998. Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206, sec. 3001(c)(1), 112

t to establish the amount of any deduction claimed . Sec . 6001 ; sec . 1.6001-1(a), Income Tax Regs . It is petitioners' position that the burden of proof with respect to the claimed gambling loss deductions at issue has shifted to respondent under section 7491(a) . That is because, according to petitioners, they "introduced credible evidence that they suffered extensive gambling losses in 1999" .5 It is respon- dent's position that the burden of proof has not shifted to respondent under sectio

Section 7491(a), however, provides that if a taxpayer introduces credible evidence and meets certain other prerequisites, the Commissioner shall bear the burden of proof with respect to factual issues relating to the liability of the taxpayer for a tax imposed under subtitle A or B of the Internal Revenue Code (Code). For the burden to shift, howev

Accordingly, we find that the estate has satisfied the requirements of section 7491(a), and we stand by our ruling at trial that respondent has the burden of proof.

We also decide this case after weighing the evidence, using a preponderance-of-the-evidence standard, not on the basis of the initial allocation of proof. - 6 - but include “the identification of services performed over a period of time and the approximate number of hours spent performing such services during such period, based

Accordingly, we hold that petitioner has failed to meet the requirements of section 7491(a)(1) and (2), and therefore the burden of proof remains on him to prove that he is entitled to the deductions and credits claimed on his return and disallowed in the notice of deficiency.

, 112 Stat. 727, regarding - 10 - effective date. Section 7491 is applicable here in that examination of the estate tax return began after July 22, 1998. With respect to the deficiency determinations in dispute, the operative rules are contained in section 7491(a). The estate seems to make the assertion, for the first time on reply brief, that·the burden of proof as to factual issues shifts to respondent under the credible evidence proviso. The Court, however, concludes a shift is not appropriat

Pursuant to section 7491(a), the burden of proof as to factual issues may shift to the Commissioner where the taxpayer complies with substantiation requirements, maintains records, and cooperates fully with reasonable requests for witnesses, documents, and other information .

rty would be an undue burden on the Court. See Stringer v. Commissioner, 84 T.C. 693, 705 (1985), affd. without published opinion 789 F.2d 917 (4th Cir. 1986). - 15 - Petitioners bear the burden of proof in these cases, and it has not shifted under section 7491(a). Petitioners did not present credible evidence that the trusts had economic substance, and the credibility of the evidence that they did produce was undermined by their implausible claims. Petitioners did not cooperate with respondent’

7491(a)(2)(A) and (B). On this record, petitioner has not wholly satisfied that requirement; therefore, the burden has not shifted to respondent under sec. 7491. Higbee v. Commissioner, 116 T.C. 438 (2001). - 4 - are required to maintain records sufficient to enable the Commissioner to determine their correct tax liability. Sec. 6001; Higbee

Taxpayers bear the burden of proving that they have met the requirements of sec. 7491(a). H. Conf. Rept. 105-599, at 239 (1998), 1998-3 C.B. 747, 993; S. Rept. 105-174, at 45 (1998), 1998-3 C.B. 537, 581. Petitioners do not contend that sec. 7491(a) applies in this case. - 32 - 678 (5th Cir. 1964); DiLeo v. Commissioner, 96 T.C. 858,

The burden of proof may shift to the Commissioner under section 7491(a) in certain circumstances.

We hold that neither the Lenzens nor RAF has shown that section 7491(a) applies to shift the burden of proof to respondent.

- 9 - Respondent satisfied his burden of production under section 7491(a)(1) because the record shows that petitioner substantially understated his income tax for 2000.

OPINION Burden of Proof Generally, under section 7491(a), the burden of proof relating to factual issues relevant to an individual’s tax liability may shift from the taxpayer to respondent where the taxpayer: (1) Has credible evidence to substantiate the item in question; (2) has maintained appropriate records relating - 14 - thereto; and (3) has cooperated with reasonable requests by re

7491(a) applies to examinations commenced after July 22, 1998, and therefore applies to this case involving tax years 1999 and 2000. - 10 - petitioner has met the cooperation and substantiation requirements, but argues that petitioner has not met the credible evidence requirement. We disagree. Credible evidence means the quality of evidence t

As one exception to this rule, section 7491(a) places upon the Commissioner the burden of proof with respect to any factual issue relating to liability for tax if the taxpayer maintained adequate records, satisfied the substantiation requirements, cooperated with the Commissioner, and introduced during the Court proceeding credible evidence with respect to the factual issue.

Petitioner does not contend that sec. 7491(a) applies in this case. - 12 - C. Whether Petitioner May Carry Forward a Capital Loss From 1997 to 1998 Petitioner contends that he may carry forward to 1998 a $15,547 capital loss from 1997. We disagree. Petitioner reported on his 1997 return that he had a $15,547 net operating loss carryo

Although neither party alleges the applicability of section 7491(a), we conclude that the burden of proof has not shifted to respondent with respect to any of the issues in the case at bar.

Although neither party alleges the applicability of section 7491(a), we conclude that the burden of proof has not shifted to respondent with respect to any of the 2We interpret the quoted language as requiring the taxpayer’s evidence pertaining to any factual issue to be evidence the Court would find sufficient upon which to base a decision on the issue in favor of the taxpayer.

Under section 7491(a), the burden of proof with respect to a factual issue relevant to a taxpayer’s liability for tax shifts from the taxpayer to the Commissioner if, inter alia, the taxpayer has: (a) Complied with substantiation requirements under the Internal Revenue Code, sec. 7491(a)(2)(A); (b) maintained all records - 9 - requir

Obot audaciously argues that the burden of proof in this case should shift to the Commissioner. We disagree. Though neither the Code nor the regulations define "credible evidence", the legislative history helps us: Credible evidence is the quality of evidence which, after critical analysis, the court would find sufficient upon whi

ited States his or her home. Dawson v. Commissioner, 59 T.C. 264, 268 (1972). An alien who lives in the United States and has no definite intention as to his or her stay is a resident for purposes of the income tax. Id. at 268 n.3. 10(...continued) Sec. 7491(a). Petitioners do not contend that sec. 7491(a) applies. 11 In deciding petitioner’s residence for 1979, we consider the law then in effect. Sec. 7701(b) was enacted in 1984 effective for taxable years beginning after Dec. 31, 1984. Deficit

Petitioners contend that respondent bears the burden of proof under section 7491(a) for all other issues as well.

Petitioners do not contend and have not established that section 7491(a) applies in this case.

OPINION Respondent acknowledges that section 7491(a) is applicable in the instant case.

Petitioners do not contend that section 7491(a) applies in this case to shift the burden of proof to respondent, nor have they established they met the requirements of section 7491(a)(2).6 Therefore, the burden of proof remains with petitioners.

Under section 7491(a), the burden of proof with respect to a factual.issue relevant to a taxpayer's liability for tax shifts from the. taxpayer to the Commissioner if, inter alia, the taxpayer has: - 7 - (a) Complied with substantiation requirements under the Internal Revenue Code, sec. 7491(a)(2)(A); (b) maintained all records requi

ranteed payments because there was no proof that payment had been incurred or paid in 1996, or that, if payments had been incurred or paid, they were deductible as ordinary or necessary expenses pursuant to 7 Petitioner and Handler do not argue that sec. 7491(a) applies to shift the burden of proof to respondent. 12 section 162(a). Alternatively, respondent determined that each of the withdrawing partners received taxable guaranteed payments in accordance with the partnership return filed by W&R

petitioners’ claim that we lack jurisdiction with respect to any aspect of this case. Burden of Proof Petitioners have neither claimed nor shown entitlement to a shift in the burden of proof to respondent with regard to any factual issue pursuant to section 7491(a). Accordingly, petitioners bear the burdens of proof and production with respect to all issues in this case, except as provided in section 7491(c). See Rule 142(a). Judicial Officer Compensation Respondent determined that the amounts M

Petitioners do not contend that section 7491(a) applies in this case. They did not substantiate their deductions, keep records of their income and expenses, or cooperate with respondent’s agents. Thus, the burden of proof does not shift to respondent. - 6 - Respondent’s determinations are presumed correct, and petitioners bear the bu

Burden of Proof Petitioners contend that, pursuant to section 7491(a), the burden of proof has shifted to respondent with respect to all outstanding issues.

ited States his or her home. Dawson v. Commissioner, 59 T.C. 264, 268 (1972). An alien who lives in the United States and has no definite intention as to his or her stay is a resident for purposes of the income tax. Id. at 268 n.3. 10(...continued) Sec. 7491(a). Petitioners do not contend that sec. 7491(a) applies. 11 In deciding petitioner’s residence for 1979, we consider the law then in effect. Sec. 7701(b) was enacted in 1984 effective for taxable years beginning after Dec. 31, 1984. Deficit

ave attempted to satisfy their burden of proof in this case through certain testimonial and documentary evi- dence. 18(...continued) losses. See supra note 3. 19See supra note 15. 20See supra note 15. 21The parties do not address the application of sec. 7491(a) in the instant case. In any event, on the record before us, we find that petitioners did not introduce credible evidence with respect to the factual issues presented. On that record, we further find that petitioners have failed to carry t

Section 7491(a), however, shifts the burden of proof to the Commissioner with respect to a factual issue affecting the tax liability of a taxpayer who meets certain preliminary conditions. Petitioner failed to cooperate with respondent, and he did not claim that section 7491(a) applies. Accordingly, section 7491(a) 2 Respondent disallowed $20,279 i

ed that the burden of proof should be shifted to respondent because the notice of deficiency failed to adequately describe the basis for the tax deficiency as required by sec. 7522(a). In response to an inquiry of the Court, respondent concedes that sec. 7491(a) applies in the present case because the examination of petitioner’s 1999 return began after July 22, 1998, the effective date of the statute. Respondent also concedes that petitioner has complied with the substantiation and cooperation r

Section 7491(a), however, provides that if a taxpayer introduces credible evidence and meets certain other prerequisites, the Commissioner shall bear the burden of proof with respect to factual issues relating to the liability of the taxpayer for a tax imposed under subtitle A or B of the Internal Revenue Code (Code). For the burden to shift, howev

OPINION Although respondent must have commenced respondent’s exami- nation of petitioner’s return for the year at issue after July 22, 1998, the parties do not address section 7491(a).5 On the record before us, we find that petitioner has failed to carry its burden of establishing that it satisfied the applicable require- ments of section 7491(a)(2).

7, regarding effective date. Section 7491 is applicable here in that examination of petitioner’s 1996, 1997, and 1998 tax years began after July 22, 1998. With respect to the deficiency determinations in dispute, the operative rules are contained in section 7491(a). Petitioners make the assertion, apparently for the first time on opening brief, that the burden of proof as to factual issues shifts to respondent because “Petitioners have produced credible testimony and documents, most especially r

Petitioners do not contend and have not established that section 7491(a) applies in this case.

We hold that neither the Lenzens nor RAF has shown that section 7491(a) applies to shift the burden of proof to respondent.

Section 7491(a) provides a taxpayer with the opportunity to shift the burden of proof to the Commissioner under specific circumstances. To shift the burden of proof, a taxpayer must have complied with all the requirements in section 7491(a). See Higbee v. Commissioner, 116 T.C. 438 (2001); E.J. - 13 - Harrison & Sons, Inc. v. Commissioner, T.C. Me

However, the burden of proof may shift to the Commissioner under section 7491(a) if the taxpayer has produced credible evidence relating to the tax liability at issue and has met his substantiation requirements, maintained required records, and cooperated with the Secretary's reasonable requests for documents, witnesses, and meetings.

Under certain circumstances, however, section 7491(a) -7- shifts the burden of proof to the Commissioner provided the taxpayer complies with substantiation requirements, maintains all required records, and cooperates with the Commissioner’s reasonable requests.

Accordingly, section 7491(a) does not shift the burden of proof to respondent, and petitioner bears the burden to 1°This burden may shift to the Commissioner to disprove entitlement to a claimed deduction if the taxpayer introduces "credible evidence" complete with the necessary substantiation and documentation sufficient to fulfill the sec.

any material fact and that a decision may be rendered as a matter of law. 1. Deficiency Determined in the Notice of Deficiency Petitioner did not appear at trial. We previously ruled that the burden of proof did not shift to respondent pursuant to section 7491(a). Petitioner bears the burden of proof for the deficiency determined in the notice of deficiency. See Rule 142(a). Petitioner failed to produce any evidence to rebut the deficiency determined by respondent in the notice of deficiency. A

Under section 7491(a), the burden of proof with respect to a factual issue relevant to a taxpayer’s liability for tax shifts from the taxpayer to the Commissioner if, inter alia, the taxpayer has: (a) Complied with substantiation requirements under the Internal Revenue Code, sec. 7491(a)(2)(A); (b) maintained all records required by t

rocedures and that this Court lacked jurisdiction in their prior case before this .Court and in this case. Petitioners ask that we vacate the decision in their prior case and that we remand this case to respondent.¹ 1 Petitioners do not contend that sec. 7491(a) applies in this case and have not established that they met the requirements of sec. 7491(a)(2). - 6 - Respondent contends that petitioners are collaterally estopped from alleging irregularities in the assessment of their tax liabilities

In the present case, the burden of proof remains on petitioners because they have not established that they have complied with the requirements of section 7491(a). In any event, the disposition of this case does not depend upon the burden of proof. Petitioners assert that the Iranian revolutionary government expropriated the propertie

7491(a)(2)(A) and (B). On this record, petitioners have not wholly satisfied that requirement; therefore, the burden has not shifted to respondent under sec. 7491. Higbee v. Commissioner, 116 T.C. 438 (2001). - 10 - passenger automobiles, cell phones, and other similar telecommunications equipment under section 280F(d)(4)(A), section 274(d) i

7491(a).5 Petitioner does not contend that section 7491(a) applies to this case. In addition, petitioner has not established that the requirements of section 7491(a)(2) have been satisfied. Consequently, we hold that petitioner has the burden of proof as to any disputed factual issue. See Rule 142(a). Although section 7491(c) does not alter th

er mother. Although Tymiesha’s grandmother occasionally brought her gifts, petitioner was 3 Generally, the burden of proof is on the taxpayer. Rule 142(a)(1). The burden of proving facts relevant to the deficiency may shift to the Commissioner under sec. 7491(a) if the taxpayer establishes compliance with the requirements of sec. 7491(a)(2)(A) and (B) by substantiating items, maintaining required records, and fully cooperating with the Secretary’s reasonable requests. Prior to trial, petitioner

urden of production under section 7491(c) as to the additions to tax under section 6651(a) for failure to file for 1994, 1996, and 1997, and under section 6654 for failure to pay 5 Petitioners do not contend and have offered no evidence showing that sec. 7491(a) applies in this case. Taxpayers bear the burden of proving that they have met the requirements of sec. 7491(a). H. Conf. Rept. 105-599, at 239 (1998), 1998-3 C.B. 747, 993; S. Rept. 105-174, at 45 (1998), 1998-3 C.B. 537, 581. - 7 - esti