Thomas M. and Dolores F. Gomez - Page 5

                                        - 5 -                                          

          The Notice of Deficiency                                                     
               Following an examination of petitioners' 1993 return,                   
          respondent issued a notice of deficiency disallowing all of the              
          deduction for unreimbursed employee business expenses and all but            
          $1,3004 of the deduction claimed for charitable contributions due            
          to lack of substantiation.  Respondent also determined that                  
          petitioners were liable for the accuracy-related penalty                     
          authorized by section 6662.                                                  
               Deductions are a matter of legislative grace, and the                   
          taxpayer bears the burden of proving that he or she is entitled              
          to the claimed deductions.  See Rule 142(a); INDOPCO, Inc. v.                
          Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice Co. v.                
          Helvering, 292 U.S. 435, 440 (1934); Welch v. Helvering, 290 U.S.            
          111, 115 (1933).  With this well-established proposition in mind,            
          we must determine whether petitioners have satisfied their burden            
          of proving that they are entitled to deductions for unreimbursed             
          employee business expenses and charitable contributions in excess            
          of the amount allowed by respondent.                                         

               4The parties stipulated that petitioners were entitled to a             
          charitable contribution in the amount of $750 (30 donations of               
          $25 each) to Calvary Chapel.  According to respondent's                      
          Memorandum of Law, that amount was included in respondent's                  
          calculation of the $1,300 charitable contribution deduction                  
          allowed for 1993 in the notice of deficiency.                                

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Last modified: May 25, 2011