Opinion ID: 453554
Heading Depth: 1
Heading Rank: 1

Heading: disallowance of tax deductions

Text: 4 The findings of the Tax Court disallowing claimed deductions by a taxpayer will be upheld unless such findings are clearly erroneous. Commissioner v. Duberstein, 363 U.S. 278, 290, 80 S.Ct. 1190, 1199, 4 L.Ed.2d 1218 (1960). A decision by the Commissioner disallowing deductions has the support of a presumption of correctness, and the petitioner has the burden of proving it to be wrong. Welch v. Helvering, 290 U.S. 111, 115, 54 S.Ct. 8, 9, 78 L.Ed. 212 (1933). Taxpayers may deduct charitable contributions made to or for the use of an organization operated exclusively for religious, charitable, or similar purposes. 26 U.S.C. Sec. 170(c)(2)(B). The courts have repeatedly held that exemptions for parent churches do not automatically carry over to local congregations. Hall v. Commissioner of Internal Revenue, 729 F.2d 632, 634 (9th Cir.1984) (citations omitted). 5 In this instance, because the plaintiff has failed to prove that the local congregations he contributed to were organized and operated exclusively for religious purposes, the plaintiff has not overcome the presumption of correctness in favor of the Commissioner. The plaintiff has also failed to show that his contributions to the local chapter of the Universal Life Church did not inure to his own benefit. See Hall, 729 F.2d at 634. 6 We find that the Commissioner's decision to disallow the plaintiff's claimed contributions is not clearly erroneous.