- 8 -
expenditure. Petitioners presented no evidence from which the
Court could conclude that respondent’s determination was
erroneous, and we affirm that determination.
The determination with respect to the 1995 mortgage interest
is different. Petitioners claimed deductions of $6,764 for 1995
and $7,883 for 1996. Petitioners apparently substantiated the
1996 amount, but could substantiate only $4,101 of the 1995
deduction. Petitioner testified that petitioners had paid the
amount deducted. Considering the substantiation of the 1996
deduction and petitioner’s testimony, we believe that it is
highly likely that petitioners incurred and paid the amount
claimed for 1995. We hold for petitioners on this issue.
3. Negligence
Section 6662(a) imposes a penalty with respect “to any
portion of an underpayment of tax required to be shown on a
return” in an amount “equal to 20 percent of the portion of the
underpayment to which this section applies.” Section 6662
applies, inter alia, to underpayments attributable to negligence
or disregard of rules or regulations. See sec. 6662(b)(1).
“Negligence” includes any failure to make a reasonable attempt to
comply with the provisions of the Internal Revenue Code, and
“disregard” includes any careless, reckless, or intentional
disregard. Sec. 6662(c). Also, “‘Negligence is a lack of due
care or the failure to do what a reasonable and ordinarily
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011