- 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