Tyson Foods, Inc. and Subsidiaries - Page 7




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               Section 6001 requires taxpayers to “keep such records,                 
          render such statements, make such returns, and comply with such             
          rules and regulations as the Secretary may from time to time                
          prescribe.”  Section 1.6001-1(a), Income Tax Regs., requires the            
          taxpayer to “keep such permanent books of account or records,               
          including inventories, as are sufficient to establish the amount            
          of gross income, deductions, credits, or other matters required             
          to be shown by such person in any return of such tax or                     
          information.”                                                               
               If a claimed deduction is disallowed by respondent,                    
          petitioner must prove entitlement to that deduction, whether                
          ordinary and necessary business expenses or depreciation expense.           
          INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992); New                  
          Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934) (“a                 
          taxpayer seeking a deduction must be able to point to an                    
          applicable statute and show that he comes within its terms”);               
          Rule 142(a); Cluck v. Commissioner, 105 T.C. 324, 337 (1995).               
          (While the burden of proof may be shifted in some cases involving           
          taxpayers, including corporations, unlike petitioner, with a                
          limited net worth, under section 7491, the burden shift occurs              
          only where “the taxpayer has maintained all records required”.              
          Sec. 7491(a)(2)(B).)                                                        
               The doctrine of Cohan v. Commissioner, supra, permits the              
          Court to estimate allowable deductions when it is clear that                







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