- 23 -
any evidence at trial concerning a $7,500 dollar [sic]
legal deduction in 1983."
Respondent's determinations are presumed correct,
and petitioner bears the burden of proving that such
determinations are erroneous. See Rule 142(a). Moreover,
every taxpayer is required to maintain adequate records to
substantiate both the existence and amount of any deduction
or credit claimed. Sec. 6001; Smith v. Commissioner, T.C.
Memo. 1997-544; sec. 1.6001-1(a), Income Tax Regs. In
this case, petitioner bears the burden of proving that he
is entitled to the claimed deduction. See Rule 142(a).
Because petitioner failed to present any evidence to
substantiate the claimed deduction, we find that petitioner
has failed to meet his burden of proof, and we sustain
respondent's disallowance of this deduction.
Additions to Tax for Fraud
Respondent determined that petitioner is liable for
the additions to tax for fraud prescribed by section
6653(b)(1) and (2) with respect to his 1983 return.
Section 6653(b)(1), as in effect for 1983, imposed an
addition to tax equal to 50 percent of any underpayment
of tax, any part of which is attributable to fraud.
Section 6653(b)(2) imposed an addition to tax equal to
Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 NextLast modified: May 25, 2011