- 8 - auto mileage based on their initial reconstructions submitted at the time of the audit. Petitioners' ever increasing claims for additional mileage are unsubstantiated. This issue was not addressed by petitioners on brief. Deductions are a matter of legislative grace; petitioners have the burden of showing that they are entitled to any deduction claimed. New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440 (1934). We find that petitioners have not proven that they are entitled to mileage expenses in excess of those allowed by respondent. C. Section 6662(a) Accuracy-Related Penalty Section 6662(a) imposes a penalty in an amount equal to 20 percent of the portion of the underpayment of tax attributable to one or more of the items set forth in section 6662(b), such as negligence or disregard of rules or regulations. Respondent determined that the entire underpayment of petitioners' tax was due to negligence or intentional disregard of rules or regulations. Sec. 6662(b)(1). As in the case of the predecessor section covering the addition to tax for negligence, section 6653(a), petitioners bear the burden of proof on the penalties in issue. Rule 142(a); Neely v. Commissioner, 85 T.C. 934, 947 (1985). Negligence includes a failure to make a reasonable attempt to comply with the provisions of the internal revenue laws. Sec. 6662(c); sec. 1.6662-3(b)(1), Income Tax Regs. Negligence is the failure to exercise due care or the failure to do what a reasonable and prudent person would do under thePage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011