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also determined that petitioner is liable for his taxable year
1999 for the accuracy-related penalty under section 6662(a).
OPINION
Petitioner bears the burden of proving that the determina-
tions in the notice are erroneous.3 Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933). Moreover, deductions are a
matter of legislative grace, and petitioner bears the burden of
proving entitlement to any deduction claimed. INDOPCO, Inc. v.
Commissioner, 503 U.S. 79, 84 (1992). Petitioner was required to
maintain records sufficient to establish the amount of any
deduction claimed. Sec. 6001; sec. 1.6001-1(a), Income Tax Regs.
$5,000 Claimed Legal Expense
It is petitioner’s position4 that he is entitled to deduct
in the 1999 Schedule C the $5,000 claimed legal expense.
A taxpayer is entitled to deduct under section 162(a)
expenses for legal fees “if the suit against the taxpayer ‘arises
in connection with’ or ‘proximately results from’ the taxpayer’s
business or profit-seeking activity. United States v. Gilmore,
372 U.S. 39, 48 (1963); Kornhauser v. United States, 276 U.S.
3Petitioner does not claim that the burden of proof shifts
to respondent under sec. 7491(a). In any event, petitioner has
failed to establish that he satisfies the requirements of sec.
7491(a)(2). On the record before us, we find that the burden of
proof does not shift to respondent under sec. 7491(a).
4Although the Court ordered petitioner to file a posttrial
brief, he failed to do so.
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