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of various documents from petitioners, the record was closed by
an Order of the Court dated January 22, 2001.
Petitioners timely filed their joint 1996 and 1997 Federal
income tax returns. Petitioners claimed charitable contribution
deductions of $17,212 and $5,020 for 1996 and 1997, respectively.
Petitioners reported adjusted gross incomes of $98,782 and
$97,960 for 1996 and 1997, respectively.
In a notice of deficiency, respondent disallowed
petitioners’ deductions for charitable contributions on the
ground that petitioners failed to substantiate the claimed
contributions. Respondent further determined that a 1996 State
income tax refund of $2,552 was includable in their gross income
for 1997.
1. Charitable Contributions
Deductions are a matter of legislative grace, and a taxpayer
bears the burden of proving that he or she is entitled to any
deductions claimed. INDOPCO, Inc. v. Commissioner, 503 U.S. 79,
84 (1992). A taxpayer is required to maintain records sufficient
to establish the amount of his or her income and deductions.
Sec. 6001; Hradesky v. Commissioner, 65 T.C. 87, 90 (1975), affd.
per curiam 540 F.2d 821 (5th Cir. 1976); sec. 1.6001-1(a), (e),
Income Tax Regs.2
2 We note that sec. 7491(a) does not affect the burden of
proof where a taxpayer fails to substantiate a deduction. Higbee
(continued...)
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