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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
contributions.
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.
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