Sheriel L. Sexcius - Page 12

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          exercise ordinary and reasonable care in the preparation of a tax                  
          return.  Sec. 6662(c); sec. 1.6662-3(b)(1), Income Tax Regs.                       
          Disregard includes any careless, reckless, or intentional                          
          disregard of rules or regulations.  Sec. 6662(c); sec. 1.6662-                     
          3(b)(2), Income Tax Regs.  Respondent bears the burden of proof                    
          with respect to the imposition of this penalty.  Rule 142(a);                      
          Robinson v. Commissioner, 102 T.C. 116, 124 (1994), affd. in                       
          part, revd. in part 70 F.3d 34 (5th Cir. 1995); Achiro v.                          
          Commissioner, 77 T.C. 881, 890 (1981).                                             
                Petitioner failed to produce at trial any substantiating                     
          evidence with respect to the deductions she claimed on her                         
          Schedules A and C.  Given her prior experiences in this Court,                     
          she was no doubt aware that the production of such evidence was                    
          expected and necessary to support her claimed entitlement to the                   
          deductions in dispute.  We can only conclude that her failure to                   
          produce such substantiating evidence results from her failure to                   
          have maintained adequate books and records as required by section                  
          6001 and the corresponding regulation.  In our view, petitioner's                  
          recordkeeping deficiencies constitute at least a careless                          
          disregard of the rules or regulations within the meaning of                        
          section 6662(b)(1) and (c), which renders her liable for the                       
          penalty imposed by section 6662(a), and we so hold.                                
                To reflect the foregoing,                                                    
                                                 Decision will be entered                    
                                           under Rule 155.                                   




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