- 15 -
The Commissioner’s determination imposing the section
6662(a) accuracy-related penalty is presumed correct, and the
taxpayer bears the burden of proving that he is not liable for
the penalty. Rule 142(a); Tweeddale v. Commissioner, 92 T.C.
501, 505 (1989). No penalty, however, shall be imposed under
section 6662(a) with respect to any portion of an underpayment if
it is shown that there was reasonable cause and the taxpayer
acted in good faith with respect to that portion of the
underpayment. Sec. 6664(c).
The disallowance of petitioner’s Schedule A deductions stems
from his negligent handling of his tax affairs and his disregard
of rules or regulations. For most items, petitioner failed to
maintain adequate records to sustain the deduction amounts in
excess of what respondent allowed. Petitioner also disregarded
the rules or regulations that require the capitalization of
assets that have a useful life extending beyond the taxable year.
While it is true that petitioner was on the road for much of 1991
and that his tax returns were prepared by tax professionals, he,
nonetheless, bears the ultimate responsibility for the accuracy
of his returns. Magill v. Commissioner, 70 T.C. 465, 479-480
(1978), affd. 651 F.2d 1233 (6th Cir. 1981). Petitioner was
aware of every deduction claimed on his tax returns.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011