- 3 - petitioner was entitled to a job-related education miscellaneous itemized deduction in the amount of $1,105, subject to the 2- percent floor on miscellaneous itemized deductions. On Schedule C, Profit or Loss From Business, petitioner claimed business expense deductions in the amount of $12,747 resulting in a loss claimed on Schedule C in the amount of $9,372. Respondent disallowed the claimed deductions in the amount of $12,747. Respondent also determined, however, that petitioner was entitled to deduct business expenses as follows: Entertainment, gift, etc. $ 193 Auto expenses 1,950 Travel, etc. 316 $2,459 Discussion Taxpayers generally bear the burden of proving that the Commissioner’s determination is incorrect. Rule 142(a); Welch v. Helvering, 290 U.S. 111 (1933). Pursuant to section 7491(a)(1), however, the burden of proof shifts to the Commissioner if, among other requirements, the taxpayer introduces “credible evidence with respect to any factual issue relevant to ascertaining” his tax liability. The burden of proof in this case does not shift to respondent because petitioner has not complied with the requirements of section 7491(a)(1). A taxpayer generally must keep records to substantiate the amounts of items reported on his Federal income tax return. Sec. 6001; sec. 1.6001-1(a), (e), Income Tax Regs. In the event thatPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011