- 17 -
taxpayer's income tax return is a self-serving declaration that
may not be accepted as proof for the deduction or exclusion
claimed by the taxpayer); Halle v. Commissioner, 7 T.C. 245
(1946) (a taxpayer’s return is not self-proving as to the truth
of its contents), affd. 175 F.2d 500 (2d Cir. 1949).
D. Accuracy-related Penalty
Finally, we consider whether petitioner is liable for the
accuracy-related penalty under section 6662(a) for 1996 and 1997.
Section 6662(a) and (b)(1) provides that if any portion of
an underpayment of tax is attributable to negligence or disregard
of rules or regulations, then there shall be added to the tax an
amount equal to 20 percent of the amount of the underpayment that
is so attributable. The term “negligence” includes any failure
to make a reasonable attempt to comply with the statute, and any
failure to keep adequate books and records or to substantiate
items properly, and the term “disregard” includes any careless,
reckless, or intentional disregard. Sec. 6662(c); sec. 1.6662-
3(b)(1), Income Tax Regs. Petitioner bears the burden of proving
that the negligence penalty is inapplicable. See Rule 142(a);
INDOPCO, Inc. v. Commissioner, 503 U.S. at 84; Welch v.
Helvering, 290 U.S. at 115.10
10 Applicable to court proceedings arising in connection
with examinations commencing after July 22, 1998, sec. 7491(c)
places on the Commissioner the burden of production with respect
to a taxpayer’s liability for any penalty. See RRA 1998 sec.
3001(a), (c)(1), 112 Stat. 726, 727. We hold that respondent
(continued...)
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