Frank Harrell, Petitioner

T .C . Summary Opinion 2006-141

UNITED STATES TAX COUR T

FRANK HARRELL, Petitioner v . COMMISSIONER OF INTERNAL REVENUE, Responden t Docket No . 19193-05S . Filed September 13, 2006 .

Frank Harrell, pro se .

Carrie L . Kleinian , for respondent .

RUWE, Judge :

This case was heard pursuant to section 74631 in effect when the petition was filed . The decision to be entered is not reviewable by any other court, and this opinion should not be cited as authority .

SERVED SEP 1 3 2006 9

Respondent determined deficiencies in petitioner's Federal income taxes of $1,755 in 2002 and $1,500 in 2003 . The only issue for decision is whether petitioner is entitled to itemized deductions for charitable contributions of $6,500 for 2002 and $6,000 for 2003 .

Some facts have been stipulated and are so found . The stipulation of facts and the attached exhibits are incorporated by this reference . When the petition was filed, petitioner resided in Wilmington, Delaware .

Respondent received petitioner's electronically filed Federal income tax returns for 2002 and 2003 on May 21, 2003, and April 30, 2004, respectively . Petitioner's returns were prepared by Chester Muhammad . Petitioner claimed itemized deductions for charitable contributions of $6,500 and $6,000 for 2002 and 2003, respectively .

During the examination of petitioner's returns, petitioner submitted computer-generated lists which show weekly cash charitable contributions to Faith Tabernacle Church (the church) of $125 per week for 2002 (totaling $6,500) and $115 per week for 2003, except for one week which shows $135 (totaling $6,000) .

Petitioner subsequently submitted revised lists which show the amount of weekly contributions made to Faith Tabernacle Baptist Church' for 2002 and 2003 . The revised list for 2002 shows weekly contributions broken down as, Tithes-$100, Pastor's Offering-$20, and Utilities Fund-$5 . The revised list for 2003 shows weekly contributions broken down as, Tithes-$90 and Pastor's Offering-$25, except that for one week it shows Tithes- $100, Pastor's Offering-$20, and Utilities Fund-$15 . Respondent determined that neither list is a reliable written record sufficient to substantiate petitioner's claimed charitable contributions . Petitioner's original and revised lists were neither dated nor signed by a representative of the church .

Petitioner's lists were written with the help of his tax preparer, Chester Muhammad, with information provided by petitioner .

Petitioner had a checking account in 2002 and 2003, but made no contributions by check .

Discussion As a general rule, the Commissioner's determinations se t forth in a notice of deficiency are presumed correct, and the taxpayer bears the burden of proving that these determinations are in error . Rule 142(a) ; Welch v . Helverina , 290 U .S . 111, 115 (1933) . Pursuant to section 7491(a), the burden of proof as to factual issues may shift to the Commissioner where the taxpaye r

introduces credible evidence and complies with substantiation requirements, maintains records, and cooperates fully with reasonable requests for witnesses, documents, and other information . Petitioner has not met the requirements of section 7491(a) because he has not met the substantiation requirements or introduced credible evidence regarding the deductions at issue .

Deductions are strictly a matter of legislative grace and the taxpayer bears the burden of proving entitlement to the claimed deduction . Rule 142(a) ; INDOPCO, Inc . v . Commissioner , 503 U .S . 79, 84 (1992) ; New Colonial Ice Co . v . Helvering, 292 U .S . 435, 440 (1934) . Section 170(a) allows as a deduction any charitable contribution the payment of which is made within the taxable year . Deductions for charitable contributions are allowable only if verified under regulations prescribed by the Secretary . Sec . 170(a)(1) . In general, the regulations require a taxpayer to maintain for each contribution one of the following : (1) A canceled check ; (2) a receipt from the donee,-' or, in the absence of a check or receipt, (3) other reliable written records . Sec . 1 .170A-13(a)(1), Income Tax Regs . Section 1 .170A-13(a)(2)(i), Income Tax Regs ., provides special rules to determine the reliability of records on the basis of all the facts and circumstances of the particular case and furthe r

provides factors to consider in making this determination, including : (1) Whether the writing that evidences the contribution was written contemporaneously and (2) whether the taxpayer keeps regular records of the contributions .

Petitioner testified that because he had made all of his charitable contributions in cash, he had no canceled checks .

Petitioner failed to provide any receipts from the church . The only records petitioner provided were the lists, which he created with the help of his tax preparer, showing weekly payments to the church . These lists were not prepared contemporaneously with the alleged contributions .

We find that petitioner failed to provide reliable evidence of his purported contributions and failed to meet his burden of proof . We hold that respondent's determinations disallowin g petitioner's claimed charitable contribution deductions are sustained .

To reflect the foregoing, Decision will be entere d for respondent .

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