Ann Jorgensen - Page 11




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          require her to take the courses at issue.  We therefore assess              
          whether these course maintained or improved petitioner's skills             
          as a high school English teacher.                                           
               Whether education maintains or improves skills required by             
          the taxpayer's employment is a question of fact.  See Boser v.              
          Commissioner, 77 T.C. at 1131; Schwartz v. Commissioner, 69 T.C.            
          877, 889 (1978); Baker v. Commissioner, 51 T.C. 243, 247 (1968).            
          The burden of proof is on the taxpayer.  See Rule 142(a); Welch             
          v. Helvering, 290 U.S. 111 (1933); Boser v. Commissioner, supra             
          at 1131; cf. sec. 7491.3  The fact that petitioner's education is           
          helpful to her in the performance of her employment does not                
          establish that its cost is deductible as a business expense.  See           
          Carroll v. Commissioner, 51 T.C. 213, 215 (1968), affd. 418 F.2d            
          91 (7th Cir. 1969).  Petitioner must establish that there is a              
          direct and proximate relationship between the U.C. Extension                
          courses and the skills required in her employment as a high                 
          school English teacher.  See Kornhauser v. United States, 276               
          U.S. 145, 153 (1928); Boser v. Commissioner, supra at 1131.  A              
          precise correlation is not necessary, but the expenditure must              



               3  Sec. 7491, as effective for court proceedings arising in            
          connection with examinations commencing after July 22, 1998,                
          shifts the burden of proof to the Commissioner, subject to                  
          certain limitations, where a taxpayer introduces credible                   
          evidence with respect to factual issues relevant to ascertaining            
          the taxpayer's liability for tax.  Petitioner does not contend              
          that her examination commenced after July 22, 1998, or that sec.            
          7491 is applicable to her.                                                  





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