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The $10,355 deduction was attributable to the claimed eligible
medical expenses submitted to the plan.
Respondent sent petitioners a deficiency notice. Respondent
determined that petitioners were not allowed to deduct the $3,906
claimed employee benefit plan expenses attributable to the health
insurance premiums for Mrs. Snorek. Respondent determined that
60 percent of $3,906 was deductible under section 162(l).
Petitioners timely filed a petition.
Discussion
We are asked to decide whether petitioners can deduct the
health insurance premiums for Mrs. Snorek and, if so, to what
extent. This is an unusual substantiation case because the
parties agree that the health insurance premiums for Mrs. Snorek
were paid; they disagree as to who paid the premiums.
We look to the general rule that deductions are a matter of
legislative grace, and the taxpayer must show that he or she is
entitled to any deduction claimed. Rule 142(a); Deputy v. du
Pont, 308 U.S. 488, 493 (1940). This includes the burden of
substantiation. Hradesky v. Commissioner, 65 T.C. 87, 89-90
(1975), affd. per curiam 540 F.2d 821 (5th Cir. 1976).
Petitioners do not assert that the burden shifts to respondent
under section 7491(a). Therefore the burden of proof remains
with petitioner.
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