                  T.C. Summary Opinion 2001-82



                     UNITED STATES TAX COURT



 MARSHALL STEWART GARDNER AND NANCY B. GARDNER, Petitioners v.
          COMMISSIONER OF INTERNAL REVENUE, Respondent



     Docket No. 6563-00S.                      Filed June 11, 2001.



     Marshall Stewart Gardner and Nancy B. Gardner, pro sese.

     Jack T. Anagnostis, for respondent.



     DEAN, Special Trial Judge:     This case was heard pursuant to

the provisions of section 7463 of the Internal Revenue Code in

effect at the time the petition was filed.    Unless otherwise

indicated, subsequent section references are to the Internal

Revenue Code in effect for the years at issue.    The decision to

be entered is not reviewable by any other court, and this opinion

should not be cited as authority.
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     Respondent determined deficiencies in Federal income taxes

of $1,672, and $1,597, and accuracy-related penalties of $334,

and $319, for the respective years 1995 and 1996.   Petitioners

concede that they are not entitled to deductions for unreimbursed

employee business expenses for 1995 and 1996 or for charitable

contributions for 1996.   The issues for decision are whether

petitioners are entitled to deductions for charitable

contributions claimed for 1995 and whether petitioners are liable

for the accuracy-related penalties for 1995 and 1996.

     A few of the facts have been stipulated and are so found.

The accompanying exhibits are incorporated herein by reference.

                            Background

     Petitioners resided in Philadelphia, Pennsylvania, at the

time their petition was filed in this case.

     The parties agree that petitioners have no receipts to

substantiate the $8,275 of charitable contributions claimed on

their 1995 joint Federal income tax return.   Marshall Stewart

Gardner (petitioner) produced at trial, however, an undated sheet

of paper containing various handwritten items and amounts.    The

items were "estimates", according to petitioner, based on "How

many times I might have given".   The sheet, stated petitioner,

was used by him in the preparation of his joint tax return for

1995.
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                              Discussion

     Deductions are strictly a matter of legislative grace, and

taxpayers must satisfy the specific requirements for any

deduction claimed.    See INDOPCO, Inc. v. Commissioner, 503 U.S.

79, 84 (1992); New Colonial Ice Co. v. Helvering, 292 U.S. 435,

440 (1934).     Taxpayers are required to maintain records

sufficient to substantiate their claimed deductions.    See sec.

6001; sec. 1.6001-1(a), Income Tax Regs.

     Section 170(a) allows a deduction for charitable

contributions paid during the taxable year subject to certain

limitations.    Deductions for charitable contributions are

allowable only to the extent verified under Treasury regulations.

See sec. 170(a)(1).    The applicable regulations require a

taxpayer to maintain for each contribution of money a canceled

check, a receipt from the donee organization showing the date and

amount of the contribution, or other reliable written records

showing the name of the donee and the date and amount of the

contribution.    See sec. 1.170A-13(a)(1), Income Tax Regs.

     Petitioners have not maintained any of the records required

to substantiate their charitable contributions.

     The only evidence of petitioners' contributions consists of

the single sheet of paper containing petitioners' estimates.    The

notations on the sheet of paper contain no dates and for the most

part list small amounts.    Two large amounts are listed as
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Combined Federal Campaign (CFC) amounts and "clothing donations

at local churches".   The Court thinks that documentation of

petitioners' CFC donations would be readily available.   The sheet

does not indicate the "local churches" to which the clothing

contributions were made.   There is no discernable relationship

between the sum of the items listed on the sheet and the total

charitable deductions claimed on the return for 1995.    The sheet

does nothing to support petitioners' claims.   The Court is not

convinced from the record that petitioners made the charitable

contributions claimed for 1995.

     Respondent’s determination that petitioners are not entitled

to deductions for 1995 for charitable contributions is upheld.

     Petitioners offered no evidence with respect to whether part

of their underpayment of tax for the years 1995 and 1996 was due

to negligence or to disregard of rules or regulations.   The Court

holds therefore that petitioners are liable for the accuracy-

related penalty under section 6662 for both 1995 and 1996.

     Reviewed and adopted as the report of the Small Tax Case

Division.

                                         Decision will be entered

                                    for respondent.
