Chay R. Stewart - Page 5

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          deficiency is frivolous.  Schiff v. United States, 919 F.2d 830,            
          832-833 (2d Cir. 1990).                                                     
               The Commissioner need not prepare a substitute for return              
          under section 6020(b) in order to determine a deficiency for a              
          taxpayer who has not filed a return for that year.  Roat v.                 
          Commissioner, 847 F.2d 1379, 1381 (9th Cir. 1988); Hartman v.               
          Commissioner, 65 T.C. 542, 545 (1975); Burnett v. Commissioner,             
          T.C. Memo. 2002-181, affd. without published opinion 67 Fed.                
          Appx. 248 (5th Cir. 2003).  Where a taxpayer files no return,               
          respondent may determine the deficiency as if a return had been             
          filed on which the taxpayer reported the amount of tax due was              
          zero; the deficiency is the amount of tax due.  Laing v. United             
          States, 423 U.S. 161, 174 (1976); Schiff v. United States, supra;           
          Roat v. Commissioner, supra.                                                
          B.   Whether Petitioner Was Denied Equal Protection and Due                 
               Process of Law Because Respondent Failed To Allow Business             
               Expense Deductions Based on Statistical Information for His            
               Industry                                                               
               Petitioner contends that he was denied equal protection and            
          due process of law because respondent failed to allow business              
          expense deductions based on statistical information for his                 
          insurance and financial products industry.  We disagree.                    
               A taxpayer may deduct all ordinary and necessary expenses              
          paid or incurred in carrying on a trade or business.  Sec.                  
          162(a).  Taxpayers are required to maintain records that                    
          sufficiently establish the amount of claimed deductions.  Sec.              





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