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regulations. Sec. 6662(b)(1). Petitioner bears the burden of
proof on the penalty issue. Rule 142(a); ASAT, Inc. v.
Commissioner, 108 T.C. 147, 175 (1997).
The accuracy-related penalty of section 6662 does not apply
with respect to any portion of an underpayment if it is shown
that there was reasonable cause for such portion and the taxpayer
acted in good faith with respect to such portion. Sec.
6664(c)(1).
Petitioner has offered no evidence that he was not negligent
in his deductions or that he had reasonable cause for them. In
fact, petitioner's briefs fail to address the negligence issue.
We cannot be sure that petitioner intended to abandon the issue,
but in any case we sustain respondent's determination of the
applicable penalty with respect to the underpayment for the
improper deductions as petitioner has not met his burden of proof
on this matter.
To reflect the foregoing,
Decision will be
entered under Rule 155.
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Last modified: May 25, 2011