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Petitioner had not established that the payment to the
Neptune Society was made for any purpose other than to bury his
sister-in-law in accordance with her religious beliefs. These
costs were personal expenses and are not deductible. Sec. 262.
Respondent is sustained on this issue.
Petitioner's trial memorandum lists payments claimed as
other miscellaneous deductions. Petitioner presented no evidence
as to the purpose for these expenditures. Therefore, petitioner
has failed to establish that he is entitled to a deduction for
any other miscellaneous expenses. Respondent is sustained on
this issue.
Accuracy-Related Penalty
Section 6662(a) imposes an accuracy-related penalty equal to
20 percent of the portion of any underpayment of tax that is due
to negligence. Sec. 6662(a) and (b)(1). The term "negligence"
includes any failure to make a reasonable attempt to comply with
the provisions of the Internal Revenue Code. Sec. 6662(c).
No penalty will be imposed under section 6662(a) with
respect to any portion of an underpayment if it is shown that in
regard to such portion there was reasonable cause and that the
taxpayer acted in good faith. Sec. 6664(c)(1); sec. 1.6664-4(a),
Income Tax Regs. This determination is based on all of the facts
and circumstances. Sec. 1.6664-4(b)(1), Income Tax Regs.
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