- 3 -
1997 1998 1999
Home mortgage interest $2,016 $1,667 --
Charitable contributions 5,359 5,040 $4,586
Unreimbursed employee expenses
and tax preparation fees 9,913 9,661 7,897
Total amounts disallowed $17,288 $16,367 $12,483
As a result of these adjustments, respondent determined that
petitioners were entitled to the standard deduction under section
63(c) for each year. As noted earlier, petitioners conceded
these adjustments, except for the penalties under section
6662(a). With respect to the penalties, petitioners contend they
should be absolved of liability for the reason that they
reasonably relied on their return preparer, Mr. Robin Beltran
(Mr. Beltran).
In the years prior to 1997, petitioners had always utilized
the services of a commercial tax return preparation service for
preparation of their Federal income tax returns. Their returns
had never previously been audited by respondent. For the year
1997 and the years thereafter, upon the recommendation of a
coworker of Mrs. Delgarito at Intel Corp., petitioners engaged
Mr. Beltran to prepare their Federal income tax returns.
Petitioners believed Mr. Beltran was a certified public
accountant, although that was never verified, nor did they ever
inquire whether that was the case. They presented only minimal
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