- 6 - has not satisfied the requirements of section 280A and is not entitled to a deduction for the use of a home office.2 In addition, respondent determined an accuracy-related penalty pursuant to section 6662(a). Section 6662 provides for an accuracy-related penalty equal to 20 percent of the portion of the underpayment due to negligence or disregard of rules or regulations. For purposes of section 6662, negligence "includes any failure to make a reasonable attempt to comply with the * * * [income tax laws]" and disregard "includes any careless, reckless, or intentional disregard." See sec. 6662(c). The Commissioner's determinations are presumptively correct, and the taxpayer bears the burden of proving otherwise. See Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Petitioner testified that he did not think he was negligent. Petitioner has failed to carry his burden. Accordingly, respondent is sustained on this issue. 2For tax years beginning after Dec. 31, 1998, sec. 280A(c)(1) has been amended to read: "the term 'principal place of business' includes a place of business which is used by the taxpayer for the administrative or management activities of any trade or business of the taxpayer if there is no other fixed location of such trade or business where the taxpayer conducts substantial administrative or management activities of such trade or business." Our holding regarding petitioner's home office for his 1995 taxable year does not imply that petitioner may not be eligible for a home office deduction in the future.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011