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Discussion
As a general rule, the Commissioner’s determinations set
forth in a notice of deficiency are presumed correct, and the
taxpayer bears the burden of proving that these determinations
are in error. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115
(1933). Pursuant to section 7491(a), the burden of proof as to
factual issues may shift to the Commissioner where the taxpayer
introduces credible evidence and complies with substantiation
requirements, maintains records, and cooperates fully with
reasonable requests for witnesses, documents, and other
information. Petitioner has not met the requirements of section
7491(a) because he has not met the substantiation requirements or
introduced credible evidence regarding the deductions and credits
at issue.
1. Charitable Contributions
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.
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Last modified: May 25, 2011