- 37 -
115 (1933). The taxpayer's burden of establishing his
entitlement to a net operating loss deduction includes the burden
of substantiation. See Hradesky v. Commissioner, 65 T.C. 87, 90
(1975), affd. per curiam 540 F.2d 821 (5th Cir. 1976). The Court
is not bound to accept unverified, undocumented testimony of the
taxpayer. See id.
At trial, the principal evidence presented in support of his
claim was petitioner's own discursive testimony. Petitioner also
submitted written narratives to chronicle his losses, along with
photocopies of certain records.
We do not find petitioner to be a credible witness, and we
give his testimony no weight. The photocopied records are not
sufficient evidence from which the Court can determine the amount
of and the right to deductions or losses for prior years.
Petitioner has therefore failed to meet his burden of proof.
Petitioner is not entitled to the asserted net operating losses
for the years in issue.
Issue 7. Fraud
Respondent determined that petitioner is liable for the
addition to tax for fraud under section 6653(b) for the years
1978 through 1983 and 1985 through 1988.5 Respondent determined
that petitioner is liable for the fraud penalty pursuant to
5Petitioner concedes that the addition to tax for fraud
applies for 1981.
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