- 9 -
Harbin v. Commissioner, supra at 377. Further, the Commissioner
is not required to make estimations or ferret out every possible
itemized deduction. Conforte v. Commissioner 74 T.C. 1160,
1177-1178 (1980), affd. in part and revd. and remanded in part on
other grounds 692 F.2d 587 (9th Cir. 1982).
Petitioner does not directly attack the method of accounting
that respondent used in determining its income and deductions,
and we have not been informed as to that methodology. Rather,
petitioner asserts that a taxpayer is not required to
substantiate its gross income provided taxable income can be
determined with reasonable accuracy. Given the definition of
taxable income and the recordkeeping requirements, we disagree,
and conclude that petitioner was required to keep records
sufficient to establish the amount of its gross income. DiLeo v.
Commissioner, 96 T.C. 858, 867 (1991), affd. 959 F.2d 16 (2d Cir.
1992). Accordingly, we find petitioner's argument that
respondent's position was not substantially justified is fatally
flawed. See Amann v. Commissioner, T.C. Memo. 1993-542, affd.
without published opinion 40 F.3d 1235 (1st Cir. 1994);
Chiaffarano v. Commissioner, T.C. Memo. 1992-614.
Petitioner makes other arguments, most of which rely to some
extent on the premise that petitioner was not required to keep
records sufficient to establish the amount of its gross income,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011