Alvin Victor Bracey - Page 5

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          legal fees that he paid in connection with the purchase of the              
          Florida house.  On Schedule C of his 1991 return petitioner                 
          deducted depreciation expense with respect to the house.                    
               Petitioner prepared and filed Federal income tax returns for           
          the years in issue without consulting an accountant or other tax            
          professional.                                                               
               We turn first to the applicability of the section 6662(b)(1)           
          penalty.  We consider each agreed adjustment (except as indicated           
          supra note 2) to determine whether the resulting portion of the             
          underpayment is attributable to "Negligence or disregard of rules           
          or regulations" as provided in that section.  "Negligence" for              
          this purpose includes "any failure to make a reasonable attempt             
          to comply with the provisions of * * * [the Internal Revenue                
          Code]", and "disregard" includes "any careless, reckless, or                
          intentional disregard".  Sec. 6662(c).  Respondent's                        
          determination of an accuracy-related penalty is presumptively               
          correct, and petitioner bears the burden of proving the                     
          determination wrong.  Rule 142(a); Monahan v. Commissioner, 109             
          T.C. 235 (1997); Hitchins v. Commissioner, 103 T.C. 711, 719                
          (1994); Neely v. Commissioner, 85 T.C. 934, 947 (1985); Bixby v.            
          Commissioner, 58 T.C. 757, 791-792 (1972).  In deciding whether             
          the accuracy-related penalty for negligence applies, the test is            
          whether there was a lack of due care or a failure to act                    
          prudently under the circumstances.  Hitchins v. Commissioner,               
          supra.  Thus, the taxpayer must show that he acted reasonably and           




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