Donald Victor Teschner - Page 14

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          made on his home on behalf of Currie, his “agent”.  This expense            
          appears to be the kind of personal expenditure that is                      
          nondeductible under section 262.                                            
               Finally, as to the professional development and maintenance            
          expenses, petitioner presented no documentation or testimony to             
          support these deductions, and he seems to have abandoned his                
          claim for these items.  As to the claimed telephone expenses, the           
          only evidence of telephone expenses presented were telephone                
          charges appearing on the hotel bills incurred while petitioner              
          was on tour with the band.  There is no evidence that these calls           
          were business related, and, hence, petitioner is not entitled to            
          any deduction.                                                              
          Accuracy-Related Penalty Under Section 6662                                 
               We finally consider whether petitioner is liable for the               
          section 6662 accuracy-related penalty.  Section 6662 imposes a              
          penalty equal to 20 percent of the portion of the underpayment              
          attributable to, inter alia, negligence or disregard of rules or            
          regulations.  "Negligence" includes failure to make a reasonable            
          attempt to comply with the law, and the term "disregard" includes           
          careless, reckless, or intentional disregard.  Sec. 6662(c).                
          Failure to maintain adequate records constitutes negligence.                
          Crocker v. Commissioner, 92 T.C. 899, 917 (1989); Schroeder v.              
          Commissioner, 40 T.C. 30, 34 (1963).                                        

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