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In the notice of deficiency, respondent disallowed all of
the expenses claimed for the 2 years in question on the ground
that petitioners "did not establish that the business expenses
shown on your tax return were paid or incurred during the taxable
year and that the expenses were ordinary and necessary to your
business".
On Schedule A, Itemized Deductions, of their 1991 return,
petitioners claimed an itemized deduction for the following:
Uniform rental $ 360.00
Leftover equipment expenses 5,435.00
Less 2% (sec. 67(a)) (188.44)
Deduction claimed $5,606.56
Respondent disallowed that amount on the ground that no
information was provided to support the claimed deduction.
The determinations of the Commissioner in a notice of
deficiency are presumed correct, and the taxpayer bears the
burden of proving that the determinations are incorrect. Rule
142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
When this case was originally heard, the Court, after
hearing the testimony of petitioner and one witness for
respondent, recessed the trial because petitioner had no books
and records to present. Petitioner stated that his books and
records were held at different places over the United States;
that he would gather his records and meet with counsel for
respondent; and that, if a settlement of the case was not
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