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We shall examine each issue raised by respondent to
determine whether respondent's position was substantially
justified. See Powers v. Commissioner, 51 F.3d 34, 35 (5th Cir.
1995); Swanson v. Commissioner, supra at 102.
Itemized Deductions
Charitable Contributions
Respondent contends that respondent's position denying
petitioner's deductions for charitable contributions for lack of
substantiation was substantially justified and properly
maintained.
Deductions for charitable contributions are allowable only
to the extent verified under Treasury regulations. See sec.
170(a)(1). The applicable regulations require a taxpayer to
maintain for each contribution either a canceled check, a receipt
from the donee containing certain information, or other reliable
written records. See sec. 1.170A-13(a)(1), Income Tax Regs.
The deduction for charitable contributions is to be claimed
by the person who made the contribution. See Herring v.
Commissioner, 66 T.C. 308, 312 (1976). Further, it is the source
of the funds that determines who made the contribution. See
Clemens v. Commissioner, 8 T.C. 121, 126 (1947); Finley v.
Commissioner, T.C. Memo. 1982-411, affd. without published
opinion 720 F.2d 1289 (5th Cir. 1983). A taxpayer, however, is
not entitled to a deduction for charitable contributions made by
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