Braun Michael and Twanda B. Cameron - Page 6

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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           

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