Christopher D. and Kristie M. Farran - Page 12
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the taxpayer bears the burden of proving that these
determinations are erroneous.6 Rule 142(a); INDOPCO, Inc. v.
Commissioner, 503 U.S. 79, 84 (1992); Welch v. Helvering, 290
U.S. 111 (1933). Moreover, deductions are a matter of
legislative grace, and the taxpayer has the burden to prove he or
she is entitled to any deduction claimed. Rule 142(a); Deputy v.
du Pont, 308 U.S. 488, 493 (1940); New Colonial Ice Co. v.
Helvering, 292 U.S. 435, 440 (1934); Welch v. Helvering, supra.
This includes the burden of substantiation. Hradesky v.
Commissioner, 65 T.C. 87, 90 (1975), affd. per curiam 540 F.2d
821 (5th Cir. 1976).
A taxpayer must substantiate amounts claimed as deductions
by maintaining the records necessary to establish he or she is
entitled to the deductions. Sec. 6001; Hradesky v. Commissioner,
supra. The taxpayer shall keep such permanent records or books
of account as are sufficient to establish the amounts of
deductions claimed on the return. Sec. 6001; sec. 1.6001-1(a),
(e), Income Tax Regs. The Court need not accept a taxpayer’s
self-serving testimony when the taxpayer fails to present
corroborative evidence. Beam v. Commissioner, T.C. Memo. 1990-
6Petitioners do not claim the burden of proof shifts to
respondent under sec. 7491(a). Petitioners also did not
establish they satisfy the requirements of sec. 7491(a)(2). We
therefore find that the burden of proof remains with petitioners.
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Last modified: November 10, 2007