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respect to such issue.” The burden, however, shall not be on the
Secretary unless, among certain other conditions, “the taxpayer
has complied with the requirements under this title to
substantiate any item”. Sec. 7491(a)(2)(A). Petitioner,
however, did not comply, as set forth below, with the
substantiation requirements relating to certain items. See secs.
6001, 274(d); Higbee v. Commissioner, 116 T.C. ___ (2001); H.
Conf. Rept. 105-599, at 241 (1998), 1998-3 C.B. 747, 995 (stating
that “taxpayers must meet applicable substantiation requirements,
whether generally imposed or imposed with respect to specific
items, such as * * * meals, entertainment, travel, and certain
other expenses” (fn. refs. omitted)).
Accordingly, respondent, pursuant to section 7491(a), does
not have the burden of proof as set forth below. Respondent
does, however, have the burden of production, pursuant to section
7491(c), relating to any 1995 or 1996 penalty or addition to tax.
II. Sole Proprietorship Expense Deductions
On his 1992, 1993, and 1994 returns (i.e., Schedule C,
Profit or Loss From Business), petitioner claimed expenses of
$164,666, $355,971, and $185,731, of which $32,123, $16,467, and
$13,070 were travel, meal, or entertainment expenses, relating to
Quantum and Equator. Respondent contends that the record
substantiates $31,318, $211,184, and $97,321 of 1992, 1993, and
1994 expenses, respectively, but no travel, meal, or
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