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is not entitled to claim head of household filing status for that
year. See Zampini v. Commissioner, T.C. Memo. 1991-395.
V. Section 6662(a) Penalty
Section 6662(a) provides for a penalty equal to 20 percent
of the underpayment in tax attributable to, among other things,
negligence or disregard of rules or regulations (without
distinction, negligence). See sec. 6662(b)(1). The penalty for
negligence will not apply to an underpayment in tax to the extent
that the taxpayer can show both reasonable cause and that the
taxpayer acted in good faith. See sec. 6664(c)(1). Negligence
“includes any failure to make a reasonable attempt to comply with
the provisions of the internal revenue laws or to exercise
ordinary and reasonable care in the preparation of a tax return.”
Sec. 1.6662-3(b)(1), Income Tax Regs. It “also includes any
failure by the taxpayer to keep adequate books and records or to
substantiate items properly.” Id.
Respondent bears the burden of producing evidence warranting
imposition of the section 6662(a) penalty. See sec. 7491(c).
Although we have found that petitioner is not entitled to a
Schedule A deduction for unreimbursed employee business expenses,
a deduction for certain substantiated expenditures listed on
Schedule C, or head of household filing status, in each case the
issue involved close questions of fact. As a result, we find
that those return positions did not constitute negligence within
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