Michael J. Rovell - Page 5

                                        - 4 -                                         
          142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).  Section              
          7491 shifts the burden of proof to the Commissioner if the                  
          taxpayer introduces credible evidence with respect to any factual           
          issue relevant to ascertaining a tax liability, provided the                
          taxpayer has maintained books and records, and has cooperated               
          with reasonable requests by the Commissioner for witnesses,                 
          information, documents, meetings, and interviews.  Based on our             
          review of the entire record in this case, we are convinced that             
          the burden has not shifted to respondent on any issue before the            
               Taxpayers are permitted deductions only as a matter of                 
          legislative grace, and only as specifically provided by statute.            
          INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New                  
          Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934).  In                
          addition, section 6001 places upon the taxpayer the requirement             
          to maintain records sufficient to sustain the veracity of                   
          taxpayer’s income and expenses.                                             
               After taking into account petitioner’s concession,1 our                
          decision rests on whether petitioner has presented the Court with           
          evidence sufficient to support the deductions disallowed by                 
          respondent for the year in issue.                                           

               1 At trial, petitioner conceded that of the $19,400                    
          deduction for State and local taxes at issue in this case, $7,400           
          of that amount was actually for Federal taxes, leaving only                 
          $12,000 of the original amount in dispute at issue.                         

Page:  Previous  1  2  3  4  5  6  7  8  Next 

Last modified: November 10, 2007