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Description Amount
Business telephone $3,420
Client gifts 2,248
Office supplies 2,725
Subscriptions 325
Total 8,718
Following an examination of petitioner’s 2000 return,
respondent issued a notice of deficiency disallowing job expenses
and other miscellaneous deductions of $45,670.
Discussion
As a general rule, the determinations of the Commissioner in
a notice of deficiency are presumed correct, and the taxpayer
bears the burden of proving the Commissioner’s determinations to
be in error. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115
(1933). As one exception to this rule, section 7491(a) places
upon the Commissioner the burden of proof with respect to any
factual issue relating to liability for tax if the taxpayer
maintained adequate records, satisfied the substantiation
requirements, cooperated with the Commissioner, and introduced
during the Court proceeding credible evidence with respect to the
factual issue. We decide the issue in this case without regard
to the burden of proof. Accordingly, we need not decide whether
the general rule of section 7491(a)(1) is applicable in this
case. See Higbee v. Commissioner, 116 T.C. 438 (2001).
Moreover, deductions are a matter of legislative grace, and
the taxpayer bears the burden of proving that he or she is
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Last modified: May 25, 2011