Hector Prowse - Page 17

                                       - 16 -                                         
               Petitioner claimed deductions for unreimbursed employee                
          business expenses totaling $11,270 and $13,397 for 2002 and 2003,           
          respectively.  Petitioner attached some documentation of these              
          expenses for both years.  However, respondent demonstrated to the           
          Court’s satisfaction that the documentation did not reflect that            
          petitioner incurred such expenses.                                          
               In that regard, petitioner reported traveling 36,600 miles             
          during 2002 and deducted expenses based on that mileage.                    
          Respondent established that petitioner’s employers did not expect           
          or require petitioner to travel as part of his job.  Moreover,              
          respondent also demonstrated at trial that both of petitioner’s             
          employers had reimbursement plans to cover legitimate employee              
          business expenses during 2002 and 2003.  Petitioner did not                 
          present at trial or on brief a plausible explanation for the                
          mileage claimed.  The complete lack of credible evidence to                 
          substantiate petitioner’s claimed employee expenses and                     
          respondent’s presentation convinces the Court that the                      
          unreimbursed employee business expenses were properly disallowed.           
               As to the other miscellaneous expenses claimed on Schedules            
          A of petitioner’s 2002 and 2003 returns such as tax preparation             
          fees, job search expenses, traveling expenses, and annual fees              
          for a safety deposit box, petitioner failed to substantiate these           
          expenses as required by section 6001 and related regulations.               
          Sec. 6001; sec. 1.6001-1(a), (e), Income Tax Regs.  Consequently,           

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