John Andrew Dorris and Donna L. Dorris - Page 9

                                        - 9 -                                         

          sec. 1.6662-3(b)(1), Income Tax Regs.  Moreover, negligence is              
          the failure to exercise due care or the failure to do what a                
          reasonable and prudent person would do under the circumstances.             
          Neely v. Commissioner, 85 T.C. 934, 947 (1985).  Disregard                  
          includes any careless, reckless, or intentional disregard of                
          rules or regulations.  Sec. 6662(c); sec. 1.6662-3(b)(2), Income            
          Tax Regs.                                                                   
               Under section 6664(c), no penalty will be imposed with                 
          respect to any portion of any underpayment if it is shown that              
          there was a reasonable cause for such portion and that the                  
          taxpayer acted in good faith with respect to such portion.  This            
          determination is based on all of the facts and circumstances.               
          Sec. 1.6664-4(b)(1), Income Tax Regs.  The most important factor            
          is the extent of the taxpayers' effort to assess their proper tax           
          liability for the years at issue.  Sec. 1.6664-4(b)(1), Income              
          Tax Regs.                                                                   
               On the record before us, we sustain respondent's                       
          determination of penalties under section 6662(a).  Petitioners              
          wrote checks for which they left the payee lines blank and                  
          claimed those purported contributions as charitable contribution            
          deductions.  Petitioners claimed deductions in the amounts of               
          $16,176.48 and $17,940.00 for 1991 and 1992, respectively.                  
          However, the documents that petitioners provided to support their           
          claimed deductions showed an amount less than that claimed.                 





Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011