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The above-listed expenses included amounts that were reimbursed
by CPSG, Inc. for expenses such as travel and entertainment,
supplies, and telephone. Additionally, these expenses included
amounts not reimbursed by CPSG, Inc. In the notice of
deficiency, respondent allowed deductions for expenses to the
extent they were reimbursed by CPSG, Inc. Additionally,
respondent allowed the car and truck expenses as itemized
deductions.
Charitable (Double) Deduction
On December 29, 1996, petitioners donated $60,000 to the
Granite Bay Montessori School. On their 1996 income tax return,
petitioners erroneously claimed a double deduction of $120,000.
The parties have stipulated that petitioners are entitled to
claim only a $60,000 charitable deduction with respect to the
donation to the school for 1996. The only issue that remains
with regard to this item is whether petitioners are liable for
the accuracy-related penalty associated with the erroneous
deduction.
OPINION
Determinations of the Commissioner in a notice of deficiency
are generally presumed correct, and the burden is on the taxpayer
to show that the determinations are incorrect.13 Rule 142(a);
13Sec. 7491 does not apply in this case to shift the burden
of proof or production to respondent because the examination of
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