Darryl Shawn and Melonee Yevette Bundridge - Page 18

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          noted that many of the records were relinquished in a bankruptcy            
          proceeding and some of the records were not recovered from their            
          accountant.  The Court determined that the taxpayers were not               
          liable for the negligence penalty.                                          
               Petitioners argue that they "made repeated attempts to                 
          retrieve all records and receipts from their accountant, who died           
          Dec. 1996."  Petitioners' 1992 and 1993 returns were prepared by            
          Bernadette Henderson of Green's Tax Service, and petitioners'               
          amended 1993 return was prepared by Lee Green of Green's Tax                
          Service.  Petitioners did not testify on their own behalf to                
          describe the circumstances in regard to the preparation of the              
          returns, and they did not call anyone involved with Green's Tax             
          Service.  Instead, in closing arguments, Mr. Bundridge described            
          their reliance on their accountant Lee Green.  However, there is            
          no evidence in the record to support petitioners' conclusion that           
          their good faith reliance on the accountant constituted                     
          reasonable cause.  Therefore, we sustain respondent's                       
          determinations with respect to the penalties for 1992 and 1993.             
               To reflect the foregoing,                                              
                                                  An order will be issued             
                                             granting respondent's motion,            
                                             and a decision will be entered           
                                             under Rule 155.                          







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