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in the record to indicate that petitioners presented any
documentation to Mr. Beltran to substantiate the itemized
deductions claimed on their return; there is no evidence that Mr.
Beltran asked for any records, and petitioners did not question
Mr. Beltran about the contents of the return or the need to
present any documentary information. The amounts claimed as
deductions for charitable contributions and home mortgage
interest were substantially in excess of the amounts petitioners
actually paid, along with the unreimbursed employee expenses.
Petitioners contend they should be absolved of liability for the
section 6662 penalties because they relied on their return
preparer.2
Section 6662(a) provides for an accuracy-related penalty
equal to 20 percent of any portion of an underpayment of tax
required to be shown on the return that is attributable to the
taxpayer's negligence or disregard of rules or regulations. Sec.
6662(a) and (b)(1). Negligence consists of any failure to make a
reasonable attempt to comply with the provisions of the Internal
Revenue Code and disregard consists of any careless, reckless, or
intentional disregard. Sec. 6662(c). The courts have refined
2 This case is one of numerous cases heard by the Court
involving tax returns prepared by Mr. Beltran, which essentially
involve the same inflated deductions. At some point in the audit
process, Mr. Beltran ceased all communications with his former
clients.
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Last modified: May 25, 2011