Roy J. and Helen Cole - Page 6

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          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.                         

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