Harry T. Cavalaris - Page 2

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               Respondent determined deficiencies in petitioner's Federal             
          income taxes for the taxable years 1990 and 1991 in the                     
          respective amounts of $4,946 and $6,665, and accuracy-related               
          penalties pursuant to section 6662(a) in the amounts of $989 and            
          $1,333, respectively.  At the time of filing the petition,                  
          petitioner resided in Charlotte, North Carolina.                            
               The substance of the dispute focuses on the deductibility of           
          a large number of relatively small items.  After concessions,2              
          the issues are:  (1) Whether petitioner is entitled to certain              
          claimed unreimbursed employee business expense deductions for the           
          years in issue; (2) whether petitioner is entitled to certain               
          claimed charitable contribution deductions for the years in                 
          issue; and (3) whether petitioner is liable for penalties                   
          pursuant to section 6662(a) for the years in issue.  Each issue             
          is discussed separately.                                                    
               We note at the outset that deductions are a matter of                  
          legislative grace and petitioner bears the burden of proving his            
          entitlement to and the amount of deductions.  Rule 142(a); Welch            
          v. Helvering, 290 U.S. 111, 115 (1933).  If the record provides             
          sufficient evidence to show that a taxpayer incurred a deductible           

          2   Respondent concedes that petitioner is entitled to                      
          charitable contribution deductions, in excess of the amounts                
          allowed in the notice of deficiency, for the taxable years 1990             
          and 1991 in the amounts of $4,182 and $6,719, respectively.                 
          Petitioner concedes that he is not entitled to deduct any portion           
          of a $55 expenditure ($38 of which was deducted) made for spa               
          services on August 13, 1990, as a charitable contribution.                  




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