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(15) copy services.21
Section 6001 and its regulations require taxpayers to
maintain records sufficient to permit verification of income and
expenses. See sec. 1.6001-1(a), Income Tax Regs. The burden is
on petitioner to demonstrate his right to the deductions. Sec.
7491(a); Rule 142(a); Underwood v. Commissioner, 56 F.2d 67 (4th
Cir. 1932). But the IRS will generally accept certain proofs of
expenditures as adequate substantiation. See Rev. Proc. 92-71,
1992-2 C.B. 437. Petitioner must in all cases provide evidence
to establish a sufficient connection between the deduction and
his trade or business. Gorman v. Commissioner, T.C. Memo. 1986-
344. This substantiation may vary by circumstance. Welch v.
Helvering, 290 U.S. 111, 115 (1933).
Certain deductions, moreover, require enhanced
substantiation under sections 274 and 280F.22 These include
travel, food and entertainment expenses, and any expenses
21 In a number of these categories, respondent initially
allowed the deductions (provided that the section 183 issue was
resolved in petitioner’s favor) in the notice of deficiency.
Generally, respondent bears the burden of proof when introducing
a new issue. Rule 142(a); Sundstrand v. Commissioner, 96 T.C.
226, 347-348 (1991). Respondent has not shown any specific
reason for a departure from his original position, so in those
categories where respondent has already allowed deductions in
excess of the documented amounts we will grant petitioner the
benefit of the original allowance.
22 See Master of the House on Les Miserables: Original
Broadway Cast (Geffen Records) (suggesting benefits of enhanced
substantiation requirements for certain innkeepers).
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