- 5 -
reported gross receipts from this activity in the amount of
$3,121 and expenses of $7,923. Petitioners also reported wages
of $30,322 and total itemized deductions of $13,734. With
respect to the itemized deductions, respondent disallowed $4,211
of claimed charitable contribution deductions and $8,173 of
miscellaneous itemized deductions. The above adjustments, which
caused an increase in the taxable income, resulted in a
computational adjustment reducing the earned income credit to
zero.
Discussion
Petitioners, despite having been admonished by the Court,
did not present any evidence (documents or testimony) to support
entitlement to the claimed deductions. As we have stated on many
occasions, deductions are a matter of legislative grace, and a
taxpayer bears the burden of proving that he is entitled to any
deductions claimed. See INDOPCO, Inc. v. Commissioner, 503 U.S.
79, 84 (1992). To the extent that petitioner suggests that the
IRS does not have the power to examine tax returns or that this
Court does not have jurisdiction, we see no need to refute such
arguments which have no colorable merit. See Crain v.
Commissioner, 737 F.2d 1417 (5th Cir. 1984). The Court of
Appeals for the Third Circuit indicated approval of Crain v.
Commissioner in Sauers v. Commissioner, 771 F.2d 64, 67 (3d Cir.
1985), affg. T.C. Memo. 1984-367; see also Matthews v.
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