David Russell Jacobson - Page 3

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               On July 31, 2001, respondent issued to petitioner a notice             
          with respect to his taxable year 1993.  In that notice, respon-             
          dent determined, inter alia, that petitioner is liable for the              
          year at issue for additions to tax under sections 6651(a)(1) and            
          6654.                                                                       
                                       OPINION                                        
               Respondent claims that section 7491 does not apply in the              
          instant case because the examination of petitioner’s case began             
          prior to July 22, 1998.  The record does not establish when                 
          respondent’s examination of petitioner’s taxable year 1993 began.           
          Assuming arguendo that that examination began after July 22,                
          1998, we find that petitioner’s burden of proof relating to the             
          deficiency determination does not shift to respondent under                 
          section 7491(a).  That is because petitioner has not complied               
          with the substantiation and record-keeping requirements of                  
          section 7491(a)(2)(A) and (B).  Accordingly, assuming arguendo              
          that respondent’s examination of the year at issue began after              
          July 22, 1998, we find that petitioner has the burden of proving            
          that respondent’s deficiency determination is wrong.  Rule                  
          142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).  With                 
          respect to any deductions that petitioner is claiming for the               
          year at issue for charitable contributions, deductions are                  
          strictly a matter of legislative grace, and petitioner bears the            
          burden of proving that he is entitled to any such deductions                






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