- 9 - percent limitation of section 274(n)); union dues and assessments of $2,113; and work boots and clothing of $350. In the notice of deficiency, respondent allowed a deduction of $1,694 for the substantiated amount of Mr. Marple’s union dues and disallowed all of the remaining deductions.7 Discussion Deductions are a matter of legislative grace, and a taxpayer must establish that he has satisfied the specific statutory requirements for any deduction claimed.8 Rule 142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). Furthermore, a taxpayer is required to keep records sufficient to enable the Commissioner to determine whether the taxpayer is liable for tax. See sec. 6001; sec. 1.6001-1(a), Income Tax Regs. A taxpayer bears the burden of substantiating the amount and purpose of any claimed deduction. See Hradesky v. Commissioner, 65 T.C. 87 (1975), affd. per curiam 540 F.2d 821 (5th Cir. 1976). 7 As noted, respondent has conceded that petitioners are entitled to a deduction on Schedule A for the 3,304 business miles attributable to Mr. Marple’s temporary employment with Eber in 2002. 8 Sec. 7491(a), which shifts the burden of proof as to factual matters to the Commissioner under certain circumstances, does not apply because petitioners have neither alleged its application nor established that they have satisfied the preconditions for its application.Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 NextLast modified: November 10, 2007