- 35 -
and, additionally, in 1995, from respondent’s determination of
unreported income.
Respondent conceded that petitioners are entitled to
deductions for meals and entertainment expenses totaling $112.45
for 1994 and that petitioners did not have unreported income for
1995. Petitioners conceded that, during 1995 and 1996,
petitioner’s tax home was Los Angeles, and, thus, petitioners
were not entitled to deduct Los Angeles living expenses for those
years. The remainder of respondent's adjustments at issue for
1994, 1995, and 1996 have been sustained.
Petitioners' evidence was far short of what was required to
sustain the disputed adjustments in the notice of deficiency for
1994, 1995, and 1996. Furthermore, petitioners presented no
evidence to show that they used due care in claiming deductions
on their returns for 1994, 1995, and 1996 that were subsequently
adjusted in the notice of deficiency and either conceded by
petitioners or sustained by this Court in favor of respondent,
nor did petitioners present evidence to show that they had
reasonable cause to claim such deductions.
Petitioner failed to maintain adequate books and records to
reflect his business expenses for any of the relevant years.
Petitioner was an experienced tax return preparer who was, or
should have been, abundantly familiar with the substantiation
requirements of section 274(d) and the necessity of maintaining
Page: Previous 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 NextLast modified: May 25, 2011