11 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011