- 11 - taxpayer must show that the expense was incurred primarily to benefit his business, and there must have been a proximate relationship between the claimed expense and the business. See Walliser v. Commissioner, supra. Petitioner provided no business records or other evidence that he resold tickets to anyone other than to one person for “2 Nights Enron Box”. Petitioner has not provided sufficient evidence to show that there was a business or that the claimed expenses were paid primarily for business reasons. Section 183(b)(2) permits a deduction for expenses that would be deductible only if the activity were engaged in for profit, but only to the extent that the gross income derived from the activity exceeds the deductions allowed by section 183(b)(1). Petitioner is entitled to the deductions allowed by section 183(b)(2) for his luxury suite activity. Additions to Tax Respondent bears the burden of production with respect to an addition to tax. Sec. 7491(c). In order to meet this burden, respondent must produce evidence sufficient to establish that it is appropriate to impose the addition to tax. Higbee v. Commissioner, 116 T.C. 438, 446-447 (2001). Addition to Tax Under Section 6651(a)(1) Respondent produced a certified copy of Form 4340 showing that the IRS has no record of petitioner’s having filed a FederalPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011