Horace E. McCann - Page 6

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          amount of 20 percent on any underpayment to which the section               
          applies.  Section 6662(b) applies to underpayments due to                   
          negligence.  Sec. 6662(b)(1).  Negligence is the failure to make            
          a reasonable attempt to comply with the law.  Sec. 6662(c).                 
          Petitioner has not established that he used reasonable care in              
          preparing his return.  Indeed, all of the deductions, except for            
          the safety shoes, are clearly not deductible.  Thus, the entire             
          deficiency as redetermined is attributable to negligence.                   
          Respondent's determination with respect to the penalty under                
          section 6662(a) is sustained.                                               
                                                  Decision will be entered            
                                             for respondent.                          

























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