Kim H. Barnes - Page 4

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          Respondent conceded that, while most of the material in                     
          petitioner’s amended petition was irrelevant, the following three           
          sentences could be construed as stating a claim upon which relief           
          could be granted:                                                           
               On December 15, 2005, or thereabout Barnes had received                
               a second Notice of Tax Deficiency from the IRS.  It                    
               disputed Barnes Tax Filings for Tax Year 2002.                         

                         *    *    *    *    *    *    *                              
               All documents, receipts, and related paperwork deemed                  
               necessary to substantiate reasonable deductions taken                  
               by Mr. Edwards [petitioner’s tax return preparer] on                   
               Barnes’ taxes had been provided to Joe Edwards.                        
          After the hearing, the Court denied respondent’s motion and                 
          struck all but the above three sentences from petitioner’s                  
          amended petition.  This case was tried in Washington, D.C., on              
          March 26, 2007.                                                             
               Section 161 provides for itemized deductions in computing              
          taxable income.  However, deductions are a matter of legislative            
          grace, and a taxpayer bears the burden of proving that she is               
          entitled to the deductions.3  See INDOPCO Inc. v. Commissioner,             
          503 U.S. 79, 84 (1992); New Colonial Ice Co. v. Helvering, 292              

               3  Under sec. 7491(a)(1), if the taxpayer introduces                   
          credible evidence with respect to any factual issue relevant to             
          the taxpayer’s liability for tax, the burden of proof shall shift           
          to the Commissioner.  The burden of proof does not shift to                 
          respondent because petitioner did not maintain adequate records.            
          See sec. 7491(a)(2).                                                        

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