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wholesale suppliers were allowed while those from retail
merchants, e.g., Target and Walgreens, were disallowed.
While we accept petitioner’s testimony that she purchased
supplies at retail establishments for convenience, it is unclear
whether petitioner excluded personal items contemporaneously
purchased with business supplies and materials. After review of
the record, it is evident that petitioner could not substantiate
the amount of expenses which respondent allowed for the years in
issue. It is petitioner’s burden to present evidence to the
Court proving the necessity of each item in the ordinary course
of business. The Court again finds that petitioner’s receipts
are in such a disarray that the amounts respondent had previously
allowed were not discernable. Based upon the above, we find that
petitioner is not entitled to deductions or cost of goods sold in
excess of those which respondent has allowed.
G. Section 6651(a)
Respondent determined additions to tax as a result of
petitioner’s failure to file timely returns for 1991 and 1992.
Section 6651(a)(1) imposes an addition to tax for failure to
timely file a tax return. The addition to tax is equal to 5
percent of the amount of the tax required to be shown on the
return if the failure to file is not for more than 1 month. See
sec. 6651(a)(1). An additional 5 percent is imposed for each
month or fraction thereof in which the failure to file continues,
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