- 9 - (2) Tax Preparation Fees: $617 Prior to the trial in this case, petitioner provided no substantiation for the $617 deduction for tax preparation fees on Schedule A of the 1999 amended return. OPINION I. Schedule C Deductions A. Introduction; Burden of Proof Respondent denies that petitioner is entitled to any Schedule C deductions associated with either Cool G Records or Melissa’s efforts to carve out a career in the music industry. Respondent’s grounds are that (1) petitioner’s expenditures were not part of an activity engaged in, by petitioner, for profit and (2) with regard to certain of those expenditures, there was no substantiation. At trial, respondent’s case-in-chief was relatively brief. Respondent relies primarily on petitioner’s inability to show entitlement to the Schedule C deductions. In pertinent part, Rule 142(a)(1) provides the general rule that “[t]he burden of proof shall be upon the petitioner”. In certain circumstances, however, if the taxpayer introduces credible evidence with respect to any factual issue relevant to ascertaining the proper tax liability, section 7491 places the burden of proof on the Commissioner. Sec. 7491(a)(1); Rule 5(...continued) $9,721 deduction for unreimbursed employee business expenses relates to petitioner’s expenditures for that clothing.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011