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required to pay the tax that is lawfully owing. He did not
change a position to his detriment. See Reuben v. Commissioner,
T.C. Memo. 2001-193. Accordingly, the doctrine of estoppel does
not apply in this case.
Petitioner's position is further contrary to
well-established law. Congress has provided that closing
agreements under section 7121 and compromise agreements under
section 7122 are the exclusive administrative means for the IRS
to settle civil tax disputes with finality. See Botany Worsted
Mills v. United States, 278 U.S. 282, 288 (1929); Estate of Meyer
v. Commissioner, 58 T.C. 69, 70 (1972); see also Sampson v.
Commissioner, 444 F.2d 530, 531 (6th Cir. 1971), affg. T.C. Memo.
1970-212. The record is devoid of any evidence that petitioner
and respondent entered into a valid closing agreement or
compromise agreement.
B. Deficiencies
The Commissioner's determinations are presumed correct, and
generally, taxpayers bear the burden of proving otherwise. Welch
v. Helvering, 290 U.S. 111, 115 (1933). Moreover, deductions are
a matter of legislative grace, and taxpayers bear the burden of
proving that they are entitled to any deduction claimed. New
Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934); Welch v.
Helvering, supra. This includes the burden of substantiation.
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