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C. 2000
On his 2000 Federal income tax return, petitioner claimed an
$11,792 deduction for home mortgage interest, a $1,520 deduction
for gifts to charity by cash or check, and “other miscellaneous
deductions” totaling $9,184. On his Schedule C, petitioner
claimed $19,690 in total expenses.
In the notice of deficiency, respondent disallowed $6,862 of
petitioner’s home mortgage interest deduction and disallowed
petitioner’s charitable contribution deduction, other
miscellaneous deductions, and Schedule C expenses in full.2
OPINION
Generally, respondent’s deficiency determinations set forth
in the notices of deficiency are presumed correct, and petitioner
bears the burden of showing the determinations are in error.
Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
Section 7491(a), however, shifts the burden of proof to the
Commissioner with respect to a factual issue affecting the tax
liability of a taxpayer who meets certain preliminary conditions.
Petitioner failed to cooperate with respondent, and he did not
claim that section 7491(a) applies. Accordingly, section 7491(a)
2 Respondent disallowed $20,279 in Schedule C expenses.
Petitioner, however, claimed only $19,690 in Schedule C expenses.
This discrepancy can be accounted for in the Rule 155
computation.
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Last modified: May 25, 2011