Kevin and Bridget Naughton - Page 21




                                       - 21 -                                         
          expenses”; “Petitioners have presented no evidence that any of              
          their claimed deductions on their 1996 Schedule C were ever paid            
          or incurred”; “Petitioners have presented no evidence that any of           
          their claimed deductions on their 1996 Schedule C were paid or              
          incurred in taxable year 1996”; “Petitioners have presented no              
          evidence that their claimed deductions on their 1996 Schedule C             
          were other than personal expenses”.  An identical series of                 
          statements was enumerated with respect to 1997.                             
               Petitioners deny the foregoing requested admissions in their           
          response and explain that “Petitioners’ denial is based on the              
          fact that their Income Tax Returns for both years were signed               
          under penalty of perjury.  This constitutes evidence of the                 
          deductibility of the expenses claimed.”  They do not further                
          address these deductions in their opposition to respondent’s                
          motion for summary judgment, and they have at no time stated that           
          they possess and will present to respondent and/or the Court                
          documentary or other supporting evidence with respect to the                
          claimed expenditures.                                                       
               Contrary to petitioners’ suggestion, it is axiomatic that              
          neither tax returns themselves, nor the execution of such forms             
          under penalty of perjury, establishes the truth of items recited            
          therein.  Lawinger v. Commissioner, 103 T.C. 428, 438 (1994);               
          Wilkinson v. Commissioner, 71 T.C. 633, 639 (1979); Roberts v.              
          Commissioner, 62 T.C. 834, 837 (1974).  Because petitioners have            






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