Festus E. Obiakor and Paulene Harris Obiakor - Page 5




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               Petitioners also attached a form entitled “Itemized Gifts              
          and Donations to the Salvation Army” to their return.  On this              
          form, petitioners listed the value of the items donated to the              
          Salvation Army as follows:                                                  
                    Items                              Value                          
                    25 Jackets                    $1900                               
                    256 Clothes                        5601                           
                    110 Pair [sic] of shoes            2485                           
                    45 Fashion bags                    1588                           
                    10 Irons and boards                200                            
                    30 Backpacks                       255                            
                    Furniture                          5560                           
                    20 Household appliances              300                          
                           Total             $17,889                                  
               With respect to the aforementioned items, petitioners did              
          not attach a Form 8283, Noncash Charitable Contributions, or any            
          other statement of appraisal to their return.                               
               Respondent issued petitioners a notice of deficiency in                
          January 2006.  Respondent disallowed in full the claimed                    
          deductions and determined a $4,283 deficiency in petitioners’               
          2003 income tax.  Petitioners filed a petition for review of                
          respondent’s determination.  Petitioners resided in Shorewood,              
          Wisconsin, when their petition was filed.                                   
                                     Discussion                                       
               Deductions are a matter of legislative grace and are allowed           
          only as specifically provided by statute.  INDOPCO, Inc. v.                 
          Commissioner, 503 U.S. 79, 84 (1992); New Colonial Ice Co. v.               
          Helvering, 292 U.S. 435, 440 (1934).  Generally, the taxpayer               







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