Rockwell Banker - Page 4




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                    substantiating the amount and purpose of the deductions claimed.                                                                                       
                    See Hradesky v. Commissioner, 65 T.C. 87, 90 (1975), affd. per                                                                                         
                    curiam 540 F.2d 821 (5th Cir. 1976); sec. 1.6001-1(a), Income Tax                                                                                      
                    Regs.  Moreover, taxpayers are required to maintain records that                                                                                       
                    are sufficient to enable the Commissioner to determine their                                                                                           
                    correct tax liability.  See sec. 6001; Meneguzzo v. Commissioner,                                                                                      
                    43 T.C. 824, 831-832 (1965); sec. 1.6001-1(a), Income Tax Regs.                                                                                        
                    Therefore, we hold that petitioner is not entitled to claim                                                                                            
                    miscellaneous itemized deductions in excess of the amount                                                                                              
                    conceded by respondent.                                                                                                                                
                              Section 6662(a) imposes a penalty of 20 percent of the                                                                                       
                    portion of the underpayment which is attributable to negligence                                                                                        
                    or disregard of rules or regulations.  See sec. 6662(b)(1).                                                                                            
                    Negligence is the lack of due care or failure to do what a                                                                                             
                    reasonable and ordinarily prudent person would do under the                                                                                            
                    circumstances.  See Neely v. Commissioner, 85 T.C. 934, 947                                                                                            
                    (1985).  The term "disregard" includes any careless, reckless, or                                                                                      
                    intentional disregard.  Sec. 6662(c).  No penalty shall be                                                                                             
                    imposed if it is shown that there was reasonable cause for the                                                                                         
                    underpayment and the taxpayer acted in good faith with respect to                                                                                      
                    the underpayment.  See sec. 6664(c).                                                                                                                   
                    On the basis of the record, we find that petitioner has                                                                                                
                    failed to demonstrate that he was not negligent and also has                                                                                           
                    failed to show that he did not disregard rules and regulations.                                                                                        






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