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all the facts and circumstances of this case, we hold
petitioner's loss from the sale of her property is a
nondeductible personal expense.
Issue 2. Accuracy-Related Penalty
Respondent determined that petitioners are liable for an
accuracy-related penalty pursuant to section 6662(a) for
negligence or disregard of rules or regulations. Petitioners
assert that they are not liable for any section 6662(a) penalty,
because they relied upon the advice of their certified public
accountant in reporting their income. The burden is on the
taxpayer to prove the Commissioner's imposition of the penalty is
in error. Luman v. Commissioner, 79 T.C. 846, 860-861 (1982);
Bixby v. Commissioner, 58 T.C. 757 (1972).
Petitioners claimed deductions to which they were not
entitled, underreported dividend income, overstated their
Schedule C expenses, and claimed an ordinary loss on the sale of
personal use property.
Section 6662 provides for the imposition of a penalty equal
to 20 percent of the portion of an underpayment which is
attributable to negligence or disregard of the rules or
regulations. Sec. 6662(a) and (b)(1). For purposes of this
section, the term "negligence" includes any failure to make a
reasonable attempt to comply with the Internal Revenue laws, a
failure to exercise ordinary and reasonable care in the
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