- 30 -
1994), affg. T.C. Memo. 1993-480; Bixby v. Commissioner, 58 T.C.
757, 791-792 (1972).
Broadly speaking, for purposes of this provision, negligence
is lack of due care or failure to do what a reasonable and
ordinarily prudent person would do under the circumstances.
Neely v. Commissioner, 85 T.C. 934, 947-948 (1985). Petitioner
contends that he relied on his tax return preparer, Levine, to
prepare the 1987 tax return, and, thus, he neither was negligent,
nor acted in intentional disregard of the rules or regulations.
Respondent contends that petitioner was negligent as to the
entire underpayment and thus, the additions to tax under section
6653(a)(1) should be imposed.
We agree with respondent.
Petitioner was obligated to keep and present adequate and
accurate records of his trade or business expenses. Sec. 6001;
Stovall v. Commissioner, 762 F.2d 891, 895 (11th Cir. 1985),
affg. T.C. Memo. 1983-450; Crocker v. Commissioner, 92 T.C. 899,
917 (1989). An ordinarily prudent taxpayer who contends that he
spent more than $60,000, supra table 2, on employee trade or
business expenses (about 40 percent of his $163,289 gross
receipts from that trade or business) would keep such records and
present them to his or her tax return preparer. Petitioner’s
diary and stubs are inadequate, and they conflict with the facts
in material respects. In addition, petitioner testified that he
did not give his diary to Levine, his tax return preparer.
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