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taxes for 1990 due to negligence. Respondent has the burden of
proof on this issue because negligence was first asserted in the
answer. Rule 142(a). Nonetheless, the evidence compels the
conclusion that petitioner failed to maintain books and records
to substantiate deductions to which she might have been entitled
and that she claimed deductions to which she clearly was not
entitled. The penalty under section 6662(a) will be sustained.
Section 6673(a)(1) provides:
SEC. 6673(a). Tax Court Proceedings.--
(1) Procedures instituted primarily for
delay, etc.--Whenever it appears to the Tax Court
that--
(A) proceedings before it have been
instituted or maintained by the taxpayer
primarily for delay,
(B) the taxpayer's position in such
proceeding is frivolous or groundless, or
(C) the taxpayer unreasonably failed to
pursue available administrative remedies,
the Tax Court, in its decision, may require the
taxpayer to pay to the United States a penalty not
in excess of $25,000.
Respondent seeks a penalty under section 6673 against petitioner
on the ground that petitioner has litigated and lost the same
issue, to wit, the deductibility of losses allegedly sustained in
her tutoring and counseling activity, repeatedly without a
showing of changed facts justifying a different result. Although
petitioner, through her counsel, conceded that she was not
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Last modified: May 25, 2011