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assessed the tax shown on petitioner’s returns, and petitioner
bears the burden of proving his returns are inaccurate.
Petitioner’s second argument is that his tax returns do not
reflect losses incurred in connection with his oil and gas
interests. Petitioner concedes that he does not have records to
support the claimed losses. Petitioner asserts that the parties
involved in the litigation of his oil and gas interests have
refused to provide him with any information, thereby making it
impossible for him to provide substantiation. For reasons that
are not clear, however, petitioner insists that respondent has or
should have such information in respondent’s administrative file.
Petitioner therefore believes that respondent has evidence of the
losses and should reduce petitioner’s outstanding tax liabilities
accordingly.
Deductions are a matter of legislative grace, and a taxpayer
generally bears the burden of proving that he is entitled to the
deductions claimed. See Rule 142(a); INDOPCO, Inc. v.
Commissioner, 503 U.S. 79 (1992). A taxpayer bears the burden of
proving a deductible loss, as well as the extent and amount of
the loss. Citron v. Commissioner, 97 T.C. 200, 207 (1991).
In this case, petitioner has not produced any credible
evidence that he sustained a deductible loss in connection with
his oil and gas interests. Petitioner believes that respondent
has relevant information that petitioner has been unable to
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Last modified: May 25, 2011