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preparer, Robin Beltran, and had no reasonable basis in law or in
fact, as addressed later in this opinion. Petitioners virtually
admitted that in their testimony. The Court is, nevertheless,
satisfied that petitioners made some contributions during the
years in question. In the absence of more convincing evidence,
the Court, on this record, allows petitioners a deduction of $300
for each of the years in question. Cohan v. Commissioner, 39
F.2d 540, 543-544 (2d Cir. 1930).
Petitioners contend they should be absolved of liability for
the section 6662(a) penalties because they relied on the
representations of their return preparer.
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
the Code definition of negligence as a lack of due care or
failure to do what a reasonable and prudent person would do under
similar circumstances. Allen v. Commissioner, 925 F.2d 348, 353
(9th Cir. 1991), affg. 92 T.C. 1 (1989). Section 1.6662-3(b)(1),
Income Tax Regs., provides that "Negligence is strongly indicated
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