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erroneous. With respect to the medical expenses, the only
substantiation offered by petitioner is the purported receipt
from Dr. Richard Hill. Dr. Hill, however, testified that the
document was not a receipt prepared by his office, and we find
his testimony to be credible. As to the charitable
contributions, the sole item offered in substantiation, the 1994
Contribution Statement, is likewise shown by a credible witness
to be lacking in legitimacy. Ms. Debra Hannah, the financial
secretary of Trinity Baptist Church, stated that the contribution
records of the church contained no reference to a gift from
petitioner.
Regarding the casualty losses and business and miscellaneous
deductions, no substantiation other than the lists set forth in
petitioner’s return has been presented. Hence, because
demonstrably fraudulent evidence will not validate a deduction,
nor, of course, will the complete absence of evidence, the
presumption of correctness afforded to respondent’s deficiency
determination is not rebutted. Petitioner is therefore liable
for the deficiency determined by respondent.
Civil Fraud Penalty
Section 6663(a) authorizes the imposition of a civil fraud
penalty and reads as follows: “If any part of any underpayment
of tax required to be shown on a return is due to fraud, there
shall be added to the tax an amount equal to 75 percent of the
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