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a 9-day trip to Hawaii in March 1985.6 At trial, Mr. Kerrigan
testified that this was a business trip for both him and Mrs.
Kerrigan. However, Mrs. Kerrigan did not record in her log the
business purpose of the trip or any meetings she had there.
Moreover, there was no testimony presented at trial indicating
that Mrs. Kerrigan ever worked outside of suburban Maryland in
1985.
Mr. Kerrigan also claimed a Schedule C travel and
entertainment expense deduction of $12,409.69. Respondent
allowed a deduction of $5,296. Mr. Kerrigan failed to
substantiate any deductions for travel and entertainment in
excess of the amount already allowed by respondent.
Section 6651(a)
Section 6651(a) imposes an addition to tax for failure to
file a timely return. Sec. 6651(a)(1). Respondent's
determination is presumed correct, and petitioners bear the
burden of proving otherwise. Rule 142(a); Abramo v.
Commissioner, 78 T.C. 154, 163 (1982). Section 6651(a) provides
an exception when the taxpayer's failure to file is due to
reasonable cause and not willful neglect. Petitioners make no
argument that there was reasonable cause for their nearly 3-year
delay in filing. Instead, they argue that no deficiency exists,
6Petitioners did not allocate any portion of their travel
expenses as personal expenditures.
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