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distribution on her 1999 return. Respondent contends that the
$171 petitioner received in excess of her $2,000 contribution is
includable in her income.
4. Addition to Tax for Failure To File a Tax Return
Respondent also determined that petitioner is liable for an
addition to tax of $7,534 for failure to timely file a tax
return.
Discussion
1. Burden of Proof
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 at 115. This includes the burden of
substantiation. Hradesky v. Commissioner, 65 T.C. 87, 90 (1975),
affd. per curiam 540 F.2d 821 (5th Cir. 1976).
A. New Matters
Although generally the burden of proof is on the taxpayer,
the Commissioner bears the burden of proof in “respect of any new
matter, increases in deficiency, and affirmative defenses,
pleaded in his answer”. Rule 142(a).
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