- 18 - 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 thePage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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