Hector Prowse - Page 15

                                       - 14 -                                         
          claimed charitable contribution deductions on Schedules A of his            
          2002 and 2003 tax returns for cash gifts to a church and noncash            
          gifts.  The only documentation produced were two receipts for               
          2002 and 2003 from the Salvation Army regarding the noncash                 
               At trial, respondent challenged the authenticity of both               
          Salvation Army receipts.  A Salvation Army representative                   
          credibly testified that the Salvation Army did not issue,                   
          prepare, or utilize the itemized receipts petitioner presented in           
          substantiation of the contributions on petitioner’s 2002 and 2003           
          Federal income tax returns.6  Petitioner offered no explanation             
          or other evidence to challenge this testimony.  Additionally,               
          petitioner did not testify or otherwise substantiate his claimed            
          cash contributions to a church.  Consequently, there is no                  
          credible evidence to support petitioner’s claimed charitable                
          contributions for the 2 years at issue.  Accordingly,                       
          respondent’s determination on this issue with respect to                    
          petitioner’s 2002 and 2003 tax years is sustained.                          
               Section 162(a) authorizes a taxpayer to deduct ordinary and            
          necessary business expenses paid or incurred during the taxable             
          year in carrying on a trade or business.  An “ordinary” expense             

               6 The Salvation Army witness testified that the receipt                
          forms presented by petitioner were not used by the Salvation Army           
          during the years at issue due to revisions in the forms that were           
          required by changes in the Internal Revenue Code.                           

Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011