TAX COURT OPINION

Case: Loretta H. & Steve L. Cremedy
Docket Number: 15261-05
Judge: Colvin
Opinion Type: bench
Filed: 04/07/2008
Pages: 4

UNITED STATES TAX COURT Washington, D. C. 2021 7 LORETTA H . & STEVE L . CREMEDY , Petitioners E__ . . v . ) Docket No . 15261-0 5 COMMISSIONER OF INTERNAL REVENUE, ) Respondent . O R D E R Pursuant to Rule 152(b), Tax Court Rules of Practice and Procedure, it i s ORDERED that the Clerk of the Court shall transmit herewith to petitioners and to respondent a copy of the pages of the transcript of the trial of the above case before Judge Thomas B . Wells at Columbia, South Carolina, on March 19, 2008, containing his oral findings of fact and opinion rendered at the conclusion of trial . In accordance with the oral findings of fact and opinion, decision will be entered for respondent . (Signed) Thomas B . Wells Judg e Dated : Washington, D . C . April 7, 2008 SERVED APR 16 2008 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 2 Bench Opinion by Judge Thomas B . Wells March 19, 200 8 Cremedy v . Commissioner Docket No . 15261-0 5 THE COURT : The Court has decided to rende r oral findings of fact and opinion in this case and th e following represents the Court's oral findings of fac t and opinion . The oral findings of fact and opinio n shall not be relied upon as precedent in any othe r case . This is the case of Loretta H . and Steve L . Cremedy , Petitioners , versus Commissioner of Internal Revenue , Respondent , docket number 15261-05 . Thi s bench opinion is made pursuant to the authority granted by Section 7459(d) and Rule 152 . All section references are to the Interna l Revenue Code as in effect for the year in issue, and all rule references are to the Tax Court Rules o f Practice and Procedure . Respondent determined a deficiency agains t Petitioner Loretta H . Cremedy for her 2002 taxabl e year in the amount of $784 and additions to tax fo r negligence under Section 6651 ( a)(1) in the amount o f $246 .90 . As to Petitioner Steve L . Cremedy, the Respondent determined a deficiency against him for hi s 2003 taxable year in the amount of $7,529 and Heritage Reporting Corporation (202) 628-4888 3 1 additions to tax under 6651(a)(1) in the amount of 2 $965 .80, and Section 6654 in the amount of $100 .69 . 3 The facts have been deemed established by 4 order of this Court pursuant to Rule 91(f) . We 5 incorporate in this bench opinion the facts so deemed 6 established . At the time the petition was filed , 7 Petitioners were residents of Piedmont, South 8 Carolina . 9 In general, Respondent's determinations are 10 entitled to a presumption of correctness, and 11 Petitioners bear the burden of rebutting tha t 12 presumption by a preponderance of the evidence -- 13 Welch v . Helvering , 290 U .S . 111 (1933) ; Rule 14 142(a) -- unless Petitioners meet the requirements of 15 Section 7491(a) . Petitioners have not met th e 16 requirements of Section 7491(a), and therefore, the 17 burden of proof remains on Petitioners . 18 In the instant case, Petitioners hav e 19 offered no credible evidence that shows Respondent's 20 determinations are incorrect and have advanced n o 21 arguments having any merit . Accordingly, we find the 22 Petitioners have failed to carry their burden o f 23 proof . Consequently, we sustain Respondent's 24 determinations of tax in full . 25 As to the additions to tax for negligence, Heritage Reporting Corporatio n (202) 628-4888 4 1 Petitioners bear the burden of proof . Rule 142(a) . 2 Under Section 7491(c), Respondent must produc e 3 evidence that it is appropriate to impose a penalty . 4 However, Petitioners have the burden of proof . Higbee 5 v . Commissioner , 116 T .C . 438, 446 (2001) . 6 The record shows that Respondent has met his 7 burden of production under Section 7491(c) . 8 Petitioners failed to offer any credible evidence on 9 this issue . Consequently, we sustain Respondent on 10 the negligence issue in the amount determined b y 11 Respondent . 12 To reflect the foregoing, decision will be 13 entered for Respondent . The foregoing represents the 14 Court's oral findings of fact and opinion in thi s 15 case . This concludes this case . Thank you . 16 (Whereupon, at 1 :52 p .m ., the bench opinion 17 in the above-entitled matter was concluded . ) 18 19 20 21 22 23 2 4 25 Heritage Reporting Corporation (202) 628-4888