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find that the underpayment arising from the unreported gross
receipts in 1990 is not subject to the accuracy-related penalty
provided in section 6662(b)(1).
Lodging Expenses
In the notice of deficiency, respondent completely
disallowed petitioner's claimed travel expenses for his wear
lining business in the amounts of $34,398 and $37,422 for 1990
and 1991, respectively. Respondent now concedes that the claimed
amounts are allowable except to the extent of lodging expenses of
$10,374 in 1990 and $11,286 in 1991. Respondent argues for the
negligence penalty because petitioner failed to substantiate the
lodging expenses as required by section 274(d). The parties'
dispute centers on petitioner's failure to produce receipts for
his claimed lodging expenses. Petitioner testified credibly that
he maintained a diary of his business travel in which he recorded
his appointments, including time, place, substance of the
discussion, and follow-up. Petitioner concedes, however, that he
did not use actual receipts to calculate the lodging expenses
claimed, but instead used a per diem amount that he obtained from
an IRS publication. We take judicial notice of IRS Publication
17, "Your Federal Income Tax" (1990), which the agency published
for use in preparing 1990 returns. In a section specifically
devoted to the records required to support deductions for
business travel, the publication states:
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