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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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Last modified: May 25, 2011