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provide supporting books and records for purchases and sales. And he has not
provided the Court with enough information to determine whether any allowable
credits would have otherwise been absorbed in the intervening years. We find
that petitioner has not met his burden of proof, and we sustain respondent.
Issue 6. Addition To Tax--Negligence
In her notice of deficiency, respondent determined that, as an
alternative to fraud, petitioner was liable for additions to tax under section
6653(a)(1)(A) and (B) for 1986 and 1987, and section 6653(a)(1) for 1988.
For 1986 and 1987, section 6653(a)(1)(A) provides that if any part of
the underpayment is due to negligence or disregard of rules or regulations,
there shall be added to the tax an amount equal to 5 percent of the
underpayment. Section 6653(a)(1)(B) imposes an addition to tax equal to 50
percent of the interest payable under section 6601 with respect to the portion
of the underpayment attributable to negligence.
For 1988, section 6653(a)(1) provides that if any part of the
underpayment is due to negligence or disregard of rules or regulations, there
shall be added to the tax an amount equal to 5 percent of the underpayment.
Negligence under section 6653(a) is a "lack of due care or failure to do
what a reasonable and ordinarily prudent person would do under the
circumstances." Neely v. Commissioner, 85 T.C. 934, 947 (1985) (quoting
Marcello v. Commissioner, 380 F.2d 499, 506 (5th Cir. 1967), affg. in part and
remanding in part 43 T.C. 168 (1964)). The taxpayer has the burden of proving
that the Commissioner's determination of the additions to tax under section
6653(a) is erroneous. Rule 142(a); Bixby v. Commissioner, 58 T.C. 757 (1972).
Petitioner has not presented evidence to establish that he was not
negligent or did not disregard rules or regulations. Petitioner did not
maintain records, as required by law, and he failed to sustain his burden of
proof on the disputed issues. Petitioner claims that his ignorance of the
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