- 5 -
Because the school did not provide a facility where Mr.
Garcia or his golf team could practice and maintain their golf
skills, Mr. Garcia claimed expenses for membership dues to the
Baywood Country Club.6 The country club allowed the team to use
its practice putting green three times a week free of charge
because Mr. Garcia was a member. Mr. Garcia also had unlimited
access as a member to the club’s facilities to practice and
maintain his golf skills.
Petitioners timely filed a petition for a redetermination
of the expenses respondent disallowed in a statutory notice of
deficiency dated July 17, 2003. After concessions, we must
decide whether these claimed expenses still in dispute are
ordinary and necessary business expenses under section 162(a).
The Commissioner's determinations are generally presumed
correct, and the taxpayer bears the burden of proving otherwise.
Rule 142(a). Although section 7491(a) shifts the burden of proof
to the Commissioner in certain situations involving examinations
commenced after July 22, 1998, as here, petitioners do not assert
that section 7491(a) shifts the burden to respondent. Moreover,
the burden of proof remains with petitioners because they did not
keep records to establish the business purpose of the employee
6Although petitioners claimed other expenses Mr. Garcia paid
to the Baywood Country Club, respondent conceded all expenses
other than the membership dues expense of $1,628, which is still
in dispute.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011