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years showed cash contributions to a church of $10 per week for a
total of $460 and $480 for 2002 and 2003, respectively. With
respect to the noncash contributions, petitioner attached
receipts to his 2002 and 2003 tax returns from the Salvation Army
dated December 30, 2002, and November 23, 2003, respectively.
The receipts listed the items of donated property, assigned a
value to each item, and a total for the contribution. For 2002,
the total was $2,900, and, for 2003, the total was $1,925. The
2002 receipt showed that the contribution was received by “Isabel
Lopez” and the 2003 receipt showed that the contribution was
received by “Patricia Rojas”. Both receipts were from the
Salvation Army at Astoria, New York.
Petitioner did not attach to his 2002 and 2003 returns any
substantiation of his cash gifts to the church, nor did he
substantiate the gifts during the examination of his returns.
Respondent examined petitioner’s 2002 and 2003 tax returns
as a result of respondent’s audit of petitioner’s 2001 return.
Respondent determined fraud under section 6663 for the 2001 tax
year based on the determination that petitioner overstated his
Schedule A itemized deductions and falsified documentation to
substantiate the claimed deductions. A petition was filed with
this Court, and the Court held in Prowse v. Commissioner, T.C.
Memo. 2006-120, that petitioner was liable for an increased
deficiency as well as the civil fraud penalty based on the
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