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an $11,975 credit, and the $11,975 of "other income" on Schedule
C, that petitioner claimed for Federal tax paid on fuel.
Petitioner, who has the burden of proof, Welch v. Helvering,
290 U.S. 111, 115 (1933), contends that respondent erred in
disallowing the expenses and deductions claimed on his return.
In an attempt to substantiate his expenses and deductions,
petitioner submitted a disorganized assortment of receipts. The
vast majority of these receipts relate either to personal
expenses or to cost of goods sold, which respondent allowed in
full. Petitioner did, however, substantiate $255 of charitable
contributions and $1,842.58 of expenses relating to the business
use of his automobiles. Petitioner is not entitled to the other
expenses and deductions that he claimed.
Petitioner contends that he is entitled to a credit for fuel
excise taxes that he allegedly paid. Section 34(a) allows a
credit for excise tax paid with respect to gasoline used for
certain "qualifying purposes" such as farming, off-highway use,
and public transportation. On Form 4136, petitioner claimed a
fuel tax credit relating to 99,000 gallons of gasoline that he
allegedly purchased. Petitioner failed, however, to establish a
"qualifying purpose". Accordingly, petitioner is not entitled to
the section 34 credit.
Petitioner contends that respondent should not have imposed
an accuracy-related penalty. Section 6662 imposes an accuracy-
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Last modified: May 25, 2011