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Section 6001 and section 1.6001-1(a), Income Tax Regs.,
require that any person subject to tax or any person required to
file a return of information with respect to income, shall keep
such permanent books of account or records, as are sufficient to
establish the amount of gross income, deductions, credits, or
other matter required to be shown by such person in any return of
such tax or information. Deductions are strictly a matter of
legislative grace, and the taxpayer bears the burden of proving
entitlement to the claimed deduction. Rule 142(a); INDOPCO, Inc.
v. Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice Co. v.
Helvering, 292 U.S. 435, 440 (1934).
A. Charitable Contribution Deductions Claimed on Schedule A
Respondent disallowed a deduction of $6,500 that petitioner
claimed as charitable contributions. Respondent argues that
petitioner failed to retain adequate records and that the
documents provided by petitioner to support cash contributions
should be disregarded because they do not constitute credible
evidence.
Section 170(a) allows as a deduction any charitable
contribution the payment of which is made within the taxable
year. Deductions for charitable contributions are allowable only
if verified under regulations prescribed by the Secretary. Sec.
170(a)(1). In general, the regulations require a taxpayer to
maintain for each contribution one of the following: (1) A
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Last modified: May 25, 2011