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1. Respondent determined that petitioner had received State
income tax refunds in the amounts of $424 and $464 in 1992 and
1993, which petitioner failed to report.
2. Respondent disallowed $16,449 and $16,439, respectively,
for the years 1992 and 1993 on account of Schedule C business-
related deductions by petitioner.
3. With respect to petitioner's itemized deductions under
Schedule A on the returns in issue, respondent disallowed $28,985
for 1992 and $28,526 for 1993 on account of deductions other than
State income taxes paid by petitioner in those years, which
respondent allowed.
Where the Commissioner has made a determination of
deficiency in income tax against a taxpayer, such as here,
regarding his income for a given year, the burden of proof on
each issue determined by the Commissioner is on the taxpayer.
The Commissioner's determination of the deficiencies is
presumably correct. Rule 142(a); Welch v. Helvering, 290 U.S.
111 (1933).
Furthermore, deductions from income are strictly a matter of
legislative grace, and the taxpayer bears the burden of proving
entitlement to all deductions claimed. INDOPCO, Inc. v.
Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice Co. v.
Helvering, 292 U.S. 435 (1934).
So far as respondent's determination of deficiencies is
concerned, based upon income and deductions as reported and/or
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Last modified: May 25, 2011