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failed to report a substantial amount of her income on her 1993
return, including income from her trucking business and income
from the sale of her truck. Petitioner overstated her Schedule E
losses by adjusting her rental expenses in an unacceptable
manner, and failed to substantiate expenses that she deducted on
her Schedule E.17
Petitioner's arguments against the imposition of the
accuracy-related penalty relate only to the portion of the
underpayment attributable to her unreported Schedule C income.
Petitioner argues that she provided her tax preparer with
receipts of her business expenses and with the Form 1099 received
from Cappy's. She maintains that she was not negligent insofar
as she maintained adequate books and records to substantiate all
of her business expenses properly.
We need not address whether petitioner maintained adequate
books and records for purposes of the accuracy-related penalty.
In light of petitioner's failure to report substantial amounts of
her income, grounds for sustaining respondent's determination
that she is liable for the accuracy-related penalty exist
independently of finding negligence based on the lack of
maintaining adequate books and records. Accordingly, petitioner
17 The accuracy-related penalty was also imposed on the
portion of the underpayment attributed to the disallowance of the
fuel tax credit under sec. 34 claimed by petitioner. Petitioner
has conceded that she is not entitled to the sec. 34 credit.
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