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After concessions,1 the issues for decision are: (1)
Whether petitioner is entitled to various deductions claimed on
Schedule C in 1993 and 1994; (2) whether petitioner is entitled
to claim a Schedule A deduction of $5,280 in 1994; and (3)
whether petitioner is liable for the accuracy-related penalty
under section 6662(a)2 for the taxable years 1993 and 1994.
Some of the facts have been stipulated3 and are so found.
The stipulation of facts and attached exhibits are incorporated
herein by this reference. Petitioner resided in Philadelphia,
Pennsylvania, at the time he filed his petition.
1Initially, respondent disallowed $220,717 and $224,480
in Schedule C deductions due to lack of substantiation for the
tax years 1993 and 1994, respectively. See appendix A.
The parties have agreed on the amount of certain of these
deductions in their stipulation. Respondent now agrees that
petitioner substantiated $119,347 and $94,499 of the Schedule C
deductions for 1993 and 1994, respectively. See appendix B.
Petitioner concedes that he received interest income of $16
from Minnesota Mutual Life Insurance Co. in 1993, none of which
was reported on his tax return. Additionally, the parties agree
that petitioner can deduct $10,830 under Schedule A for
charitable donations made in 1993, not $14,571 under Schedule C
as initially claimed and disallowed. Finally, the parties agree
that petitioner is entitled to claim the following 1994 Schedule
A itemized deductions: $169 for State taxes and $12,843 for
charitable contributions.
2Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the years at issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
3Stipulation No. 65 incorrectly indicates that Exhibits 43-J
through 68-J, which are copies of 26 of petitioner's checks,
totaled $12,736. The total amount is $5,767.43.
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