- 23 -
petitioner has not shown that there was a reasonable cause
for the underpayment or that he acted in good faith
regarding the underpayment.
We agree with respondent. Petitioner's contention,
that maintaining accurate records of gambling losses and
winnings is difficult, is legally insufficient to overcome
respondent's determination. The fact is that all taxpayers
are required to substantiate deductions under section
165(d), and petitioner is being held to the same standard
that is imposed on all taxpayers seeking a deduction under
section 165(d). See, e.g., Wolkomir v. Commissioner, T.C.
Memo. 1980-344; Salem v. Commissioner, T.C. Memo. 1978-142;
Myers v. Commissioner, T.C. Memo. 1976-191; Taormina v.
Commissioner, T.C. Memo. 1976-94.
We find that petitioner did not prove that the under-
payment with respect to his 1991 return was due to reason-
able cause or that he acted in good faith. Accordingly, we
sustain respondent's imposition of an accuracy-related
penalty under section 6662(a).
Additions to Tax for 1993
The final issue is whether petitioner is liable for
the addition to tax under section 6651(a)(1) for failure to
file a timely return for 1993, as determined by respondent
in the amount of $6,164. An addition to tax is imposed
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011