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h. The Central Valley Towing document is
duplicated several times. The insurance application is
duplicated several times. The check made out to
Gilbert Insurance is duplicated several times. The
Swift Dodge document is duplicated several times.
Michoff, Jr., has offered no evidence that the claimed
deductions were ordinary and necessary to a trade or business.
The receipts offered do not indicate that they were incurred with
regard to the limousine activity of Michoff, Jr., or with regard
to any business activity. Additionally, many of the receipts
offered to substantiate the claimed deductions were duplicated
and were for tax years not subject to this issue. Michoff, Jr.,
has failed to substantiate most of his claimed deductions, and he
has failed to establish that any of the claimed deductions were
for expenses ordinary and necessary to a trade or business.
Accordingly, respondent's determination regarding this issue is
sustained.
Failure To Timely File Federal Income Tax Returns
Respondent contends that Michoff, Jr., is liable for the
addition to tax for failure to timely file for the 1986 and 1987
tax years. Michoff, Jr., contends that he had less than $3,000
of income for each of those years and thus was not required to
file a return. It is undisputed that Michoff, Jr., failed to
file an income tax return for the 1986 and 1987 tax years.
Section 6651(a) provides an addition to tax for failure to
timely file an income tax return by the prescribed due date
unless the taxpayer can establish that such failure was due to
reasonable cause and not willful neglect. Although reasonable
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