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bears the burden of proving the Commissioner’s determination is
erroneous. Sec. 7491(a); Rule 142(a); Welch v. Helvering, 290
U.S. 111 (1933). Although not raised by the parties, under
section 7491(a), the burden of proof with respect to any factual
issue will shift to respondent if petitioners’ testimony with
respect to the issue is credible. For the following reasons, we
hold that petitioners have not satisfied this burden.
Generally, section 170(a) allows as a deduction any
charitable contribution made within the taxable year. A
charitable contribution is allowed as a deduction, however, only
if verified under regulations prescribed by the Secretary. Sec.
170(a)(1). These regulations prescribe record-keeping and return
requirements for deductions for charitable contributions made
after December 31, 1984. Sec. 1.170A-13, Income Tax Regs. With
respect to claimed deductions for noncash contributions in excess
of $5,000,4 taxpayers must: (1) Obtain a qualified appraisal,
(2) attach a fully completed appraisal summary (Form 8283) to the
tax return on which the deduction is claimed, and (3) maintain
records pertaining to the claimed deduction in accordance with
section 1.170A-13(b)(2)(ii), Income Tax Regs. No deduction will
4 Similar items of property, such as generic items like
clothing and furniture, are aggregated when determining whether
the $5,000 threshold is met. In this case, the claimed
deductions for jackets, clothes, shoes, and bags are aggregated
and satisfy the $5,000 threshold. The claimed deduction for
furniture also exceeds $5,000.
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Last modified: November 10, 2007