Wilbur Kenneth Griesmer - Page 11

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          to make a reasonable attempt to comply with the statute, and the             
          term "disregard" includes any careless, reckless, or intentional             
          disregard.  Sec. 6662(c).  Petitioner bears the burden of proving            
          that the negligence penalty is inapplicable.  See Rule 142(a);               
          INDOPCO, Inc. v. Commissioner, supra; Welch v. Helvering, supra;             
          cf. Girsis v. Commissioner, T.C. Memo. 1992-244.                             
               At trial, petitioner did not offer any evidence to suggest              
          that he was not negligent, nor did he argue that he should not be            
          held liable for the penalty.  Cf. Girsis v. Commissioner, supra.             
          In any event, petitioner did not maintain any books or records               
          regarding the matters in issue.  The negligence penalty may be               
          justified if the taxpayer fails to keep adequate records.  See               
          Lysek v. Commissioner, 583 F.2d 1088, 1094 (9th Cir. 1978), affg.            
          T.C. Memo. 1975-293; Crocker v. Commissioner, 92 T.C. 899, 916               
          (1989).  Further, failure to maintain adequate records indicates             
          disregard of the rules and regulations requiring taxpayers to                
          maintain permanent records sufficient to establish their gross               
          income and deductions.  See Crocker v. Commissioner, supra at                
          917.  We therefore sustain respondent's determination on this                
               To reflect our disposition of the disputed issues, as well              
          as petitioner's concession,                                                  
                                                   Decision will be entered            
                                              for respondent.                          

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