Estate of Carlos A. Vega, Deceased, Trinidad O. Vega, Administratrix, and Trinidad O. Vega - Page 5

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          issue.  Therefore, we sustain respondent's determinations and               
          discuss the grossly erroneous and inequitability requirements in            
          greater detail below.                                                       
               A.   Grossly Erroneous Requirement                                     
               Under section 6013(e)(1)(B), Mrs. Vega must establish that             
          there was a substantial understatement of tax attributable to               
          grossly erroneous items of Mr. Vega in 1988 and 1989.  Respondent           
          concedes that for each year there was a substantial                         
          understatement attributable to items of Mr. Vega.  As a result,             
          we need only consider whether the items were grossly erroneous.             
               Respondent determined that the 1988 return understated gross           
          income from Schedule E by $1,952.  Because all items omitted from           
          gross income are considered grossly erroneous, the $1,952                   
          understatement satisfies this requirement.  Sec. 6013(e)(2);                
          Flynn v. Commissioner, 93 T.C. 355 (1989).                                  
               Respondent also disallowed claimed Schedule C deductions               
          totaling $64,725 in 1988 and $26,421 in 1989.  The deductions               
          will be considered grossly erroneous only if Mrs. Vega proves               
          they had no basis in fact or law.  Sec. 6013(e)(2).  She did not            
          produce any evidence on this point.  Mrs. Vega cannot rely on the           
          mere disallowance of the deductions or her inability to                     
          substantiate them to establish a lack of basis in fact or law.              
          Douglas v. Commissioner, 86 T.C. 758, 763 (1986); Portillo v.               
          Commissioner, T.C. Memo. 1990-68, revd. in part, affd. in part,             
          and remanded 932 F.2d 1128 (5th Cir. 1991).  Consequently, she              

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