Carl Stuart Brandon and Ann Stuart Brandon - Page 10




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          1995 and 1996 alleged by petitioners or the estimated tax                   
          payments shown on their returns.  A portion of the $6,619 tax               
          liability shown on the return for 1995 was satisfied by an                  
          overpayment credit from 1994 of $5,601.66.  Petitioners had                 
          previously made a $14,808 payment by check on January 16, 1996,             
          and designated that it be applied to tax years 1993 and 1994.               
               Taxpayers are required to substantiate the deductions and              
          credits that they claim on their returns by maintaining records             
          necessary to establish both the amount and their entitlement to             
          such items.  Sec. 6001; Meneguzzo v. Commissioner, 43 T.C. 824,             
          831-832 (1965); sec. 1.6001-1(a), Income Tax Regs.; see Rule                
          142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992);              
          Hradesky v. Commissioner, 65 T.C. 87, 90 (1975), affd. per curiam           
          540 F.2d 821 (5th Cir. 1976); see also sec. 7491(a)(2)(A) and               
          (B).4                                                                       
               The parties stipulated copies of two letters written by                
          petitioner and addressed to the IRS office in Boston,                       
          Massachusetts.  In the letter dated June 16, 1997, petitioner               
          acknowledged receipt of tax change notices for 1995 and 1996 and            
          a request for payment of 1995 tax, penalty, and interest.                   






               4Because petitioners have not met the requirements of sec.             
          7491(a)(2), they retain the burden of proof on this issue.                  





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