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using our best judgment, but bearing heavily against petitioner
whose inexactitude is of her own making, we hold that
petitioner is entitled to deduct telephone expense in the
amount of $1,000 for each of the years in issue. See Cohan v.
Commissioner, 39 F.2d 540, 543-544 (2d Cir. 1930).
F. Accuracy-Related Penalties
Finally, we turn to respondent's determination that
petitioner is liable for accuracy-related penalties under
section 6662(a).
Section 6662(a) imposes an accuracy-related penalty equal
to 20 percent of the underpayment of tax resulting from, inter
alia, negligence or disregard of rules or regulations. See
sec. 6662(b)(1). For purposes of section 6662(a), the term
"negligence" includes any failure to make a reasonable attempt
to comply with the Code, and the term "disregard" includes any
careless, reckless, or intentional disregard. Sec. 6662(c).
Negligence has also been defined as a lack of due care or
failure to do what a reasonable person would do under the
circumstances. See Antonides v. Commissioner, 91 T.C. 686, 699
(1988), affd. 893 F.2d 656 (4th Cir. 1990).
The accuracy-related penalty under section 6662(a) does
not apply to any portion of an underpayment if it is shown that
there was reasonable cause for such portion and that the
taxpayer acted in good faith. See sec. 6664(c)(1). The
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