- 40 -
for 1999 by $180,260 ($1,087,000 - $906,740). While there is
firm authority for the proposition that compensation paid in one
year may be deductible in that year if paid to make up for
undercompensation of services rendered to the payor in or before
the year of payment, e.g., Lucas v. Ox Fibre Brush Co., 281 U.S.
at 119, the same is not true in the case of a payment for
services to be performed in the future, e.g., Maple v.
Commissioner, T.C. Memo. 1968-194, affd. 440 F.2d 1055 (9th Cir.
1971). Moreover, from a factual point of view, petitioner makes
no claim that the $180,260 was paid in 1999 for services that
Beiner would render in 2000. We hold that Beiner’s reasonable
compensation for the subject years was $906,740 and $1,533,093,
respectively.
B. Accuracy-Related Penalty for 2000
Respondent also determined that petitioner was liable for an
accuracy-related penalty under section 6662(a) and (b)(1). That
section in relevant part imposes a 20-percent accuracy-related
penalty on the portion of an underpayment that is due to
negligence or intentional disregard of rules or regulations.
Negligence includes a failure to attempt reasonably to comply
with the Code. Sec. 6662(c). Disregard includes a careless,
reckless, or intentional disregard. Id.
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