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expenses of $5,661, $2,938, $2,310, and $3,013 claimed in the
2001 Schedule C, the 2002 Schedule C,4 the 2003 Schedule C, and
the 2004 Schedule C; and (4) the tuition and fees deduction of
$633 claimed in the 2003 return. In the notice, respondent also
determined that petitioners are liable for each of their taxable
years 2001 through 2004 for the accuracy-related penalty under
section 6662(a).
OPINION
Petitioners bear the burden of proving error in the determi-
nations for each of their taxable years 2001 through 2004 that
remain at issue.5 See Rule 142(a); Welch v. Helvering, 290 U.S.
111, 115 (1933).
Before turning to the issues presented, we shall summarize
certain principles applicable to certain of those issues and
evaluate the evidence on which petitioners rely.
Certain Applicable Principles
Deductions are strictly a matter of legislative grace, and
petitioners bear the burden of proving entitlement to any deduc-
4In disallowing petitioners’ expenses claimed in the 2002
Schedule C, respondent disallowed all of the expenses claimed in
that schedule except for $10 of petitioners’ claimed “Insurance”
expenses.
5Petitioners do not claim that the burden of proof shifts to
respondent under sec. 7491(a). In any event, petitioners have
failed to establish that they satisfy the requirements of sec.
7491(a)(1) and (2). On the record before us, we find that the
burden of proof does not shift to respondent under sec. 7491(a).
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