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for 1998 and 1999 and the disallowed gambling losses for 1999,
and (2) whether petitioners are liable for the penalties under
section 6662(a). In addition, the Court considers the
applicability of section 6673(a) to the facts of this case.
Petitioners were both employed during the 2 years in
question. Mr. Lavigne was employed by a construction company,
and Mrs. Lavigne was employed by Intel Corp. They reported
combined wages of $70,996 and $83,088, respectively, for 1998 and
1999.
For the 2 years in question, petitioners' income tax returns
were prepared by a return preparer, Robin Beltran. The record
does not reflect the circumstances surrounding how petitioners
engaged Mr. Beltran.2 Mr. Beltran advised petitioners that
records were not necessary to substantiate deductions claimed on
their returns, and such records could be disregarded because,
irrespective of records, a taxpayer, under the law, was "allowed"
deductions for such expenses pursuant to a "formula" based on the
income the taxpayer earned.
The deductions disallowed by respondent on petitioners' tax
returns consisted of the following:
2 The Court notes that this case is one of numerous cases
heard by the Court involving tax returns prepared by Mr. Beltran,
which essentially involve the same deductions at issue here.
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