- 4 -
Petitioners jointly filed for 2002 a Form 1040, U.S.
Individual Income Tax Return. Petitioners reported adjusted
gross income (AGI) of $161,328.15 and claimed an IRA contribution
deduction of $3,500.
Respondent subsequently issued to petitioners a statutory
notice of deficiency for 2002 disallowing the IRA contribution
deduction of $3,500. In addition, respondent determined
adjustments for interest and real estate income from a
partnership,2 and other computational adjustments to the return.
Discussion
The Commissioner’s determinations are presumed correct, and
generally taxpayers bear the burden of proving otherwise.3 Rule
142(a)(1); Welch v. Helvering, 290 U.S. 111, 115 (1933).
IRA Contribution Deduction
Tax deductions are a matter of legislative grace with the
taxpayer bearing the burden of proving entitlement to the
2In the petition, petitioners did not raise any issues
regarding the interest and the real estate income reported on
Schedule K-1. Therefore, petitioners are deemed to have conceded
them. Rule 34(b)(4); see Funk v. Commissioner, 123 T.C. 213, 215
(2004).
3Petitioner has not raised the issue of sec. 7491(a), which
shifts the burden of proof to the Commissioner in certain
situations. This Court concludes that sec. 7491 does not apply
because petitioner has not produced any evidence that establishes
the preconditions for its application.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011