Ronnie F. Judy - Page 19

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                  Petitioner has not satisfied his burden of proof.  We                               
            conclude that he had additional unreported income of $7,439 in                            
            1989 and $36,663 in 1990.5                                                                
            2.    Accuracy-Related Penalties                                                          
                  Section 6662(a) and (b)(1) imposes a penalty equal to 20                            
            percent of the portion of an underpayment of tax that is                                  
            attributable to negligence or disregard of rules or regulations.                          
            “Negligence” includes any failure to make a reasonable attempt to                         
            comply with the provisions of the internal revenue laws.  Sec.                            
            6662(c).  The failure to maintain adequate records from which the                         
            taxpayer’s income can be determined constitutes negligence.                               
            Crocker v. Commissioner, 92 T.C. 899, 917 (1989); sec. 1.6662-                            
            3(b), Income Tax Regs.  The penalty does not apply to any portion                         
            of an underpayment for which the taxpayer had reasonable cause                            
            and acted in good faith.  Sec. 6664(c).  Petitioner bears the                             
            burden of proof.  Rule 142(a).                                                            
                  Respondent determined that the entire underpayments for 1989                        
            and 1990 were attributable to negligence.  Petitioner has offered                         
            no argument to challenge this determination, and there is no                              
            evidence in the record that would suggest a reasonable cause for                          
            petitioner’s underreporting of income and inadequate                                      

                  5 Petitioner’s brief contains additional contentions and                            
            allegations.  Although these are not discussed above, we have                             
            considered them and found them to be without merit.                                       

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