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Petitioner admitted that her 2000 return contained many errors,
and with the assistance of her authorized representative, Clark,
petitioner prepared a draft amended 2000 return to facilitate
settlement. In the unfiled draft amended 2000 Schedule C,
petitioner claimed $1,929 for transportation expenses (mileage
from first job to second job), $500 in tax preparation costs,
$215 for office expenses, $333 for supplies, and $356 for a
cellular telephone. By notice of deficiency, respondent
disallowed all but $90 of petitioner’s Schedule C deductions.
Respondent’s determination of the business deductions allowed to
petitioner for 2000 was equal to 10 percent of the gross receipts
reported on petitioner’s 2000 Schedule C. At trial petitioner
admitted that she had no substantiation of her business expenses
for 2000, except for a bill from her tax return preparer for
$408. She conceded all deductions for business expenses in
excess of those allowed in respondent’s notice of deficiency,
except for claims for deductions for business transportation
expenses and for the tax return preparation bill.
Discussion
In general, the Commissioner’s determinations are presumed
correct, and the taxpayer bears the burden of proving that those
determinations are erroneous. Rule 142(a). Section 7491(a) does
not apply in this case to shift the burden of proof to
respondent. Petitioner has neither alleged that section 7491(a)
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