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eligibility for offsets to gross income or deductions under
section 162(a).
Petitioner reported the subject expenditures as
returns and allowances for both 1989 and 1990 and reduced
the gross income reported on his Schedule C for each year
by the total expenditures for the year. In his posttrial
briefs, petitioner's principal position is that the subject
expenditures are "ordinary and necessary and deductible
under section 162." It is not clear whether petitioner
also takes the position that the subject expenditures are
"returns and allowances" that offset the gross receipts
realized from the business reported on petitioner's
Schedules C. However, it is not necessary to sort out
petitioner's legal position because we find that petitioner
has failed to adequately substantiate any of the subject
expenditures either as an offset of the gross receipts of
his Schedule C business or as an ordinary and necessary
business deduction.
During his testimony at trial, petitioner sometimes
compared the fees that he claims to have received during
1989 and 1990 from the clients of his Schedule C business
with the payments treated as returns and allowances that
he claims to have made to, or on behalf of, some of those
clients. As was true in the case of the returns and
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