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its opening, petitioners also may have personally benefited from
the services contributed.
Petitioners’ poor record keeping and inability to show that
all of the expenditures were for the benefit of CBR is of their
own making. However, the record establishes that CBR benefited
directly and primarily from certain of the services of Omega
employees. After considering all of the evidence, we hold that
petitioners are entitled to claim contributions for services by
Omega to CBR of $3,300, $9,900, $5,200, $30,000, $19,000, and
$24,000 for the tax years 1990, 1991, 1992, 1993, 1994, and 1995,
respectively.8
The final issue for our consideration is whether petitioners
are liable for the accuracy-related penalties under section 6662,
which respondent determined were due to negligence, disregard of
rules and regulations, and substantial understatement of income
tax. An accuracy-related penalty is imposed on a taxpayer if any
portion of an underpayment of tax is attributable to either
negligence or disregard of rules or regulations or any
substantial understatement of income tax. See sec. 6662(a) and
(b)(1) and (2). The term “negligence” includes any failure to
make a reasonable attempt to comply with the provisions of the
Internal Revenue Code, and the term “disregard” includes any
8 Amounts are decided for the years 1990, 1991, and 1992 for
purposes of determining the amount of the carryover, if any, to
the years before the Court.
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