Diesel Country Truck Stop, Inc. - Page 41




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          often used interchangeably with compensation.  Respondent did not           
          disallow any part of petitioner’s compensation expense deduction.           
          (4) Neither Steve, who had signed, nor Bedevian, who had prepared           
          petitioner’s fiscal 1990 tax return, both of whom testified,                
          provided us with evidence as to what were the intended components           
          of petitioner’s claimed $101,517 rent expenses deduction.                   
               Based on the foregoing we conclude that petitioner has                 
          failed to persuade us that it is more likely than not that                  
          petitioner’s deductible rent expenses exceed $15,517.                       
               We hold for respondent on this issue.                                  
                                  III. Section 6662                                   
               Respondent determined that petitioner is liable for an                 
          accuracy-related penalty for negligence in the amount of 20                 
          percent of the entire underpayment.  Respondent contends that               
          “petitioner failed to exercise due care or do what a reasonable             
          and ordinarily prudent person would do under the circumstances.”            
          Alternatively, respondent contends that petitioner is liable for            
          an accuracy-related penalty in the amount of 20 percent of the              
          entire underpayment for substantial understatement of tax.                  
               Petitioner maintains that it has no deficiency and therefore           
          is not liable for an accuracy-related penalty under section 6662.           
               We agree with respondent.                                              










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