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Petitioners timely filed returns for the taxable years 2002
and 2003. Petitioners’ returns were prepared by Chester
Muhammad.
During the examination, petitioners provided respondent’s
agent with computerized lists showing contributions allegedly
made to the Calvary Bible Church (the church) by Darin Warfield
and by Sharon Hardin during 2002 and 2003. The lists for Darin
Warfield show cash contributions of $103 on January 6, 2002, and
$97 every week thereafter (totaling $5,050) in 2002, and cash
contributions of $135 on January 5, 2003, and $126 every week
thereafter (totaling $6,561) in 2003. The lists for Sharon
Hardin show the same amounts contributed in both 2002 and 2003 as
the lists for Darin Warfield. None of the lists provided by
petitioners are dated or signed by a member of the church.
Petitioners provided to respondent’s counsel identical lists for
2002 and 2003 except for the fact that the caption “Calvary Bible
Church” had been eliminated. Subsequently, Sharon Hardin
provided substantiation for contributions that she made to
Hutchinson Memorial U.A.M.E. Church. See supra note 3.
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
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