Les B. Martin and Millie A. Martin - Page 20

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               Negligence is defined as the failure to exercise the due care          
          that a reasonable, prudent person would exercise under similar              
          circumstances.  Zmuda v. Commissioner, 731 F.2d 1417, 1422 (9th             
          Cir. 1984), affg. 79 T.C. 714 (1982); Neely v. Commissioner, 85             
          T.C. 934, 947 (1985).  A taxpayer has the burden of proving that            
          respondent's determination is in error.  Rule 142(a); Luman v.              
          Commissioner, 79 T.C. 846, 860-861 (1982).                                  
               Petitioners claimed numerous Schedule A and Schedule C                 
          expenses on their 1989 and 1990 returns.  At trial, they                    
          substantially reduced the amount of the deduction for most of these         
          expenses.  For the most part, their documentation to substantiate           
          these expenses was lacking.  Indeed, petitioners presented no               
          documentary  evidence  to  support  their  claim  of  $7,174  in            
          miscellaneous itemized deductions for 1990.                                 
               Considering all the facts, we find that petitioners were               
          negligent and disregarded rules and regulations in preparing their          
          1989 and 1990 returns.  Thus, we sustain respondent's determination         
          that petitioners are liable for the accuracy-related penalty on the         
          amount of the underpayment for 1989 and 1990.                               
                    To reflect the foregoing,                                         

                                                  Decision will be entered            
                                             under Rule 155.                          








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