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with reference to checking account information from 1992 must be
eliminated from respondent’s computation.
Depreciation Deductions
Petitioners have failed to offer any evidence to contradict
respondent’s partial disallowance of their depreciation
deductions. Petitioner suggested he had depreciation schedules
that would support the allowance of those deductions and was
given ample time following trial to provide these schedules, but
he failed to do so. Respondent is sustained on this issue.
Charitable Contribution Deductions
Respondent disallowed the charitable contribution deduction
petitioners claimed for each year in issue. The revenue agent
testified that she did not question those deductions during the
examination of petitioners’ returns. Furthermore, the deductions
were taken into account in respondent’s cash T-account analysis.
On the basis of petitioner’s testimony, we find that petitioners
are entitled to the charitable contribution deductions as claimed
on their returns.
Section 6651 Addition to Tax
The failure to file a timely Federal income tax return
results in a mandatory addition to tax unless the taxpayer shows
that the failure was due to reasonable cause and not due to
willful neglect. Sec. 6651(a). The taxpayer bears the heavy
burden of proving both of these elements. United States v.
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Last modified: May 25, 2011