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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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Last modified: May 25, 2011