Creed J. Pearson - Page 5




                                         -5-                                          
          particular organization (the Organization), and he asks that we             
          allow him to audit the Organization and pay the taxes he owes out           
          of the proceeds of that audit, even though petitioner’s tax                 
          liability is not related to the Organization.  Petitioner has not           
          filed Federal income tax returns for any year after 2003, and he            
          does not intend to file voluntarily any returns or pay any tax              
          until respondent takes some action against the Organization.  In            
          trying to resolve some of the issues in this case, petitioner has           
          provided summaries of his expenses for the years in issue but has           
          not provided any corroborating documents.                                   
                                       OPINION                                        
          Deductions                                                                  
               A taxpayer bears the burden of proving that the                        
          Commissioner’s determinations set forth in the notice of                    
          deficiency are incorrect.  Rule 142(a)(1); Welch v. Helvering,              
          290 U.S. 111, 115 (1933).  Tax deductions are a matter of                   
          legislative grace, and a taxpayer has the burden of proving that            
          he is entitled to the deductions claimed.  Rule 142(a)(1);                  
          INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New                  
          Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934).  In                
          addition, a taxpayer must keep sufficient records to substantiate           
          any deductions claimed.  Sec. 6001; New Colonial Ice. Co. v.                
          Helvering, supra at 440.  Section 7491(a) does not apply in this            
          case because petitioner has not substantiated the deductions he             







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next 

Last modified: March 27, 2008