- 3 -
petitioner a notice of deficiency in February 2006 disallowing
$11,802 of petitioner’s claimed Schedule C deductions, consisting
of $7,853 for business use of petitioner’s home, and $3,949 in
other expenses for computers, monitors, and a fax machine. The
notice of deficiency also disallowed $19,897 of petitioner’s
itemized deductions, consisting of $9,384 in unreimbursed
employee vehicle expenses, and $11,375 in attorney’s and tax
preparation fees, reduced by 2 percent of petitioner’s adjusted
gross income.
Discussion
In general, the Commissioner’s determinations set forth in a
notice of deficiency are presumed correct, and the taxpayer bears
the burden of proving that these determinations are in error.
Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
Pursuant to section 7491(a), the burden of proof as to factual
matters shifts to the Commissioner under certain circumstances.
Petitioner has neither alleged that section 7491(a) applies nor
established his compliance with the requirements of section
7491(a)(2)(A) and (B) to substantiate items, maintain records,
and cooperate fully with respondent’s reasonable requests.
Petitioner therefore bears the burden of proof.
Deductions are a matter of legislative grace, and the
taxpayer bears the burden of proving that he is entitled to any
deduction claimed. INDOPCO, Inc. v. Commissioner, 503 U.S. 79,
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: November 10, 2007