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Section 6662(c) defines "negligence" as any failure to make a
reasonable attempt to comply with the provisions of the Internal
Revenue Code. The term "disregard" includes any careless,
reckless, or intentional disregard of Treasury rules or
regulations. Sec. 6662(c).
Taxpayers are expected to maintain adequate records to
substantiate claimed deductions, and failure to maintain adequate
records may constitute negligence. Sec. 6001; Schroeder v.
Commissioner, 40 T.C. 30, 34 (1963). Even though a taxpayer's
records may be lost, the burden is generally still on the
taxpayers to substantiate deductions claimed with receipts and
other sufficient documentation and evidence. Petitioner in this
case has failed to meet his burden with regard to the adjustments
that we have sustained and has failed to convince us as to the
cause for his inability to provide at trial additional books and
records relating to his scrap metal recycling business.
With the exception noted below, we sustain respondent's
determination of the accuracy-related penalties for 1990 and 1991
with respect to all adjustments that we have sustained.
We believe, however, that the accuracy-related addition to
tax in this case is not properly attributable to those portions
of petitioner's tax deficiencies for 1990 and 1991 that relate to
the disallowed home office expense deductions that petitioner
claimed and that we have disallowed. Petitioner did not
demonstrate a careless, reckless, or intentional disregard for
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