Darin Warfield and Sharon Hardin - Page 5

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          (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.  Petitioners have not met the requirements of                  
          section 7491(a) because they have not met the substantiation                
          requirements or introduced credible evidence regarding the                  
          deductions at issue.                                                        
          1.   Charitable Deductions                                                  
               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. v. Commissioner,             
          503 U.S. 79, 84 (1992); New Colonial Ice Co. v. Helvering, 292              
          U.S. 435, 440 (1934).  Section 170(a) allows as a deduction any             
          charitable contribution the payment of which is made within the             
          taxable year.  Deductions for charitable contributions are                  
          allowable only if verified under regulations prescribed by the              
          Secretary.  Sec. 170(a)(1).  In general, the regulations require            
          a taxpayer to maintain for each contribution of money one of the            
          following:  (1) A canceled check; (2) a receipt from the donee;4            



               4 A receipt is required to contain the name of the donee,              
          the date of the contribution, and the amount of the contribution.           
          Sec. 1.170A-13(a)(1), Income Tax Regs.                                      





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