Opinion
12804-20
03-14-2024
MOHAMAD NASSER ABOUI & MAHYAR MIZANI, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Joseph Robert Goeke Judge
Pending before the Court is petitioners' Motion to Shift the Burden of Proof, filed February 26, 2024, with attached declarations. On March 13, 2024, respondent filed a response with attached declarations. The Court determines that the appropriate manner to deal with this motion is to define the burden of production on respondent and not change the burden of proof. Accordingly, it is
ORDERED that petitioners' Motion to Shift the Burden of Proof, filed February 26, 2024, is denied. It is further
ORDERED that respondent has the burden of production to show a likely source of the bank deposits relied upon to prove income and to disprove nontaxable sources alleged by petitioners. Respondent may prove a likely source of income by demonstrating that petitioners' disclosed business is capable of producing significantly more income than the amount reported on petitioners' federal income tax returns. It is further
ORDERED that if respondent meets the above stated burden of production, petitioners have the burden of proof to rebut the evidence produced by respondent. It is further
ORDERED that petitioners' Motion for Continuance, filed January 23, 2024, is denied and this case remains set for trial on the April 22, 2024, San Francisco, California Special Session.