- 2 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011