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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 that
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