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In connection with the first issue, whether petitioners are
entitled to deductions for medical and dental expenses for 1997,
based on the recited factual predicate, the Court sustains
respondent on this issue.5
With respect to the charitable contributions, petitioners
deducted the following amounts on their returns, all of which
were disallowed by respondent:
1997 1998 1999
Cash $4,700 $5,157 $2,502
Noncash 453 413 413
Total $5,153 $5,570 $2,915
From petitioners' testimony at trial, the above amounts were
arbitrarily determined by the return preparer, Mr. Beltran, who,
as noted earlier, advised petitioners that substantiating
information was not necessary for such deductions.
5 The Court takes cognizance of sec. 7491, which, in
certain instances, places the burden of proof on respondent with
respect to examination of returns commencing after July 22, 1998.
Although the parties did not address the applicability of sec.
7491 to this case, the Court notes that, because of the years
involved, the examination of petitioners' returns at issue here
likely commenced after July 22, 1998. However, for the burden to
be placed on the Commissioner, the taxpayer must comply with the
substantiation and recordkeeping requirements of the Internal
Revenue Code. Sec. 7491(a)(2)(A) and (B). In addition, sec.
7491(a) requires that the taxpayer cooperate with reasonable
requests by the Commissioner for "witnesses, information,
documents, meetings, and interviews". Sec. 7491(a)(2)(B). On
this record, the burden has not shifted to respondent under sec.
7491. Higbee v. Commissioner, 116 T.C. 438 (2001).
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