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offset is phased out once the Rule 155 computations that we order
below are made. Rule 142(a).
As stated in our findings of fact, after concessions and the
application of statutory limitations, the amount of disallowed
deductions in issue is $4,934. Respondent argues that
petitioners have not substantiated their deduction for real
estate taxes to the extent of $1,384 and their deduction for
charitable contributions to the extent of $3,548 ($2 mathematical
error). Petitioners argue that their deductions are established
by the canceled checks presented by petitioner at the audit
level. Additionally, petitioners argue that, as respondent
disallowed many of the checks at the audit level on the grounds
that petitioners could have received a personal benefit, it is
impossible for petitioners to prove that they did not receive
such a benefit.
In the instant case, petitioners provided no books, records,
or checks substantiating the disallowed deductions. As to the
checks petitioner claims to have presented at the audit level, we
decide petitioners' liability for income tax deficiencies on the
evidence produced at trial and not a previous record developed at
the administrative level. Greenberg's Express, Inc. v.
Commissioner, 62 T.C. 324 (1974). On the basis of the record in
the instant case, we conclude that petitioners have not carried
their burden of substantiating the amount and purpose of the
disallowed deductions. Accordingly, we sustain respondent's
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