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Court may, if convinced by the evidence, estimate the amount of
deductible expenses incurred. Cohan v. Commissioner, 39 F.2d 540
(2d Cir. 1930). On this record, the Court holds that petitioner
paid child care expenses of $1,000 for 1995. She is therefore
entitled to a child care credit for 1995 based upon the
applicable percentage allowable under section 21(a)(2).
The final issue is whether petitioner is liable for the
accuracy-related penalties under section 6662(a) for the years at
issue. 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. Sec. 6662(c). Disregard consists of any careless,
reckless, or intentional disregard. Id.
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). Treasury regulations further provide that negligence
includes any failure to exercise ordinary and reasonable care in
the preparation of a tax return, failure to keep books and
records, or failure to substantiate items properly. Sec. 1.6662-
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