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payments would be itemized deductions or some other type of
adjustment if they had been proven.
The testimony shows that, except for failing to reduce
petitioner's tips for "payouts" to busboys and other employees,
respondent's computation of petitioner's tip income is
reasonable. In fact, petitioner, though not stating that she
accepted it, did not truly question the amounts respondent showed
for various items. She, herself, thought the difference in her
records and respondent's computation was due to the amount of the
tips she passed on to others in the restaurant who also served
the customers and amounts she paid for breakage and other items.
Certainly these differences in method of computation of tip
income account for a substantial portion of the difference in
petitioner's and respondent's computations.
In our view, petitioner has shown that she should not be
held liable in either year here in issue for the accuracy-related
penalty under section 6662. Although respondent did not state
what subsection of section 6662 she contended required the
penalty, it is apparent that the penalty must have been intended
as one for negligence. Petitioner had her tax returns prepared
by a preparer she considered competent. She kept records in a
way she believed to be in accordance with the instructions from
her return preparer. Certainly for someone with petitioner's
lack of tax knowledge, it would be normal to expect that her tips
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