Elliot Virgil Wilkerson - Page 13

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               Petitioner purportedly operates an art and flowers business.           
          Petitioner claims subtractions from gross receipts (e.g., returns           
          or allowances and cost of goods sold) as well as various expense            
          deductions associated with this business.                                   
               Petitioner, however, offered no evidence whatsoever to                 
          substantiate deductions for the claimed amounts.  Petitioner                
          failed to produce any records or documents that any of the                  
          expenses were allegedly paid or incurred with respect to this               
          business.  Moreover, petitioner failed to present any testimony,            
          however slight, to explain the expenses listed on Schedule C to             
          give us any basis upon which we could estimate such deductions.             
          On the basis of his revised Form 1040, petitioner would have this           
          Court infer facts not in the record to prove that he incurred               
          legitimate business expenses.  The burden, however, is on                   
          petitioner to substantiate his claimed deductions.  We hold,                
          therefore, that petitioner failed to meet his burden of proof.              
          Consequently, petitioner is not entitled to subtract returns or             
          allowances and cost of goods sold from gross receipts, nor is he            
          entitled to any of his claimed expense deductions.  See sec.                
          274(d); Williams v. United States, supra; Vanicek v.                        
          Commissioner, supra; sec. 1.274-5T, Temporary Income Tax Regs.,             
          50 Fed. Reg. 46014 (Nov. 6, 1985).                                          

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