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the 2 years in question.2 The remaining issues for decision are:
(1) Whether petitioners are entitled to charitable contribution
deductions for the 2 years at issue, and (2) whether petitioners
are liable for the accuracy-related 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. Pacheco was an officer for a manufacturing
company, and Mrs. Pacheco was an equipment technician for the
Intel Corp. They reported combined wages of $85,951 and $98,982,
respectively, for 1998 and 1999.
For prior years, petitioners had engaged the services of a
public accountant for the preparation of their Federal income tax
returns. Their preparer died prior to the time for preparation
of the 1998 and 1999 returns. Based on the recommendation of a
coworker of Mrs. Pacheco, petitioners engaged Robin Beltran to
prepare their 1998 and 1999 returns.3
2 The parties agreed that, for the year 1998, petitioners
were entitled to a deduction of $3,525 for automobile (mileage)
expenses and tax preparation fees of $235.11, and $3,403 for
automobile expenses and $721 for tax preparation fees for 1999,
subject to the 2-percent limitation of sec. 67.
3 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.
When the subject returns were called into question by the
Internal Revenue Service, Mr. Beltran advised petitioners to
(continued...)
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