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demonstrate "gross errors of fact" in the revenue agent's
report. The first two particulars, i.e., that the agent
failed to cite any statute that would disallow the claimed
deduction, and that the agent cited Van Iderstine Co. v.
Commissioner, supra, have nothing to do with the facts of
the case. The last particular, consisting of the statement
in the revenue agent's report that "no income has ever been
reported for the claimed deduction", deals with a fact, but
one which is true. As mentioned above, we found that
petitioners deducted the value of Dr. Remy's professional
time in performing telephone services for his patients but
did not include that amount in their gross income. Thus,
it is clear that no income has ever been reported for the
claimed deduction.
Accuracy-Related Penalty
Respondent determined that petitioners are liable for
an accuracy-related penalty under section 6662(a) for each
of the years in issue. Section 6662(a) imposes a penalty
equal to 20 percent of the portion of the underpayment of
tax which is attributable to one or more of five types of
errors specified in section 6662(b) including:
(1) Negligence or disregard of rules or
regulations.
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