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Mrs. Walker has a stepdaughter, Avis Bivens Faskey (Mrs.
Faskey), from her prior marriage. Both Mrs. Faskey and her
husband were incarcerated during 1990 and 1991. As a result, Mrs.
Walker's stepdaughter's three children lived with petitioners in
1990. The children, Tremayne Bivens Faskey (Tremayne), Trovor
Faskey (Trovor), and Jessie Covington (Jessie), all were under 10
years of age as of 1991. Petitioners cared for Tremayne and
Trovor during 1990 and 1991, and for Jessie for part of 1990.
General Legal Principles
As a general rule, the Commissioner's determinations are
presumed correct; the taxpayer bears the burden of proving that
those determinations are erroneous. Rule 142(a);1 Welch v.
Helvering, 290 U.S. 111, 115 (1933).
Deductions are strictly a matter of legislative grace; the
taxpayer bears the burden of proving that he or she is entitled
to the deductions claimed. Rule 142 (a); New Colonial Ice Co. v.
Helvering, 292 U.S. 435, 440 (1934). This includes the burden of
substantiation. Hradesky v. Commissioner, 65 T.C. 87, 90 (1975),
affd. per curiam 540 F.2d 821 (5th Cir. 1976).
Section 6001 and the regulations promulgated thereunder
require taxpayers to maintain records sufficient to permit
verification of income and expenses. As a general rule, if the
1All Rule references are to the Tax Court Rules of Practice
and Procedure. All section references are to the Internal Revenue
Code in effect for the years under consideration.
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Last modified: May 25, 2011