Brett W. Barnes - Page 6

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          "Disregard" includes any careless, reckless, or intentional                 
          disregard of rules or regulations.  Sec. 6662(c); sec.                      
          1.6662-3(b)(2), Income Tax Regs.                                            
               Section 6664(c)(1), however, provides that the penalty under           
          section 6662(a) shall not apply to any portion of an                        
          underpayment, if it is shown that there was reasonable cause for            
          the taxpayer's position with respect to that portion and that the           
          taxpayer acted in good faith with respect to that portion.  The             
          determination of whether a taxpayer acted with reasonable cause             
          and in good faith is made on a case-by-case basis, taking into              
          account all the pertinent facts and circumstances.  Sec.                    
          1.6664-4(b)(1), Income Tax Regs.  The most important factor is              
          the extent of the taxpayer's effort to assess his proper tax                
          liability for the year.  Id.                                                
               The following dialogue at trial concerning petitioner's                
          failure to substantiate his medical expenses for 1992 illustrates           
          his lack of effort to assess his proper tax liability:                      
               Q  Did you, in fact, contact any doctor or hospital to                 
               get such records?                                                      
               A  I went to contact somebody, and they told me that I                 
               needed to come in and go through the process of going                  
               and doing the microfilms or whatever.  And I just --                   
               didn't go.  No.                                                        
               Based on the record, we find that petitioner has not proved            
          that his underpayment was due to reasonable cause or that he                

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