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Cir. 1996)(quoting Schrum v. Commissioner, 33 F.3d 426, 437 (4th
Cir. 1994), affg. T.C. Memo. 1995-46).
The record reflects that petitioner failed to maintain
adequate records after repeatedly being advised to do so by
respondent. In the case of Kikalos v. Commissioner, T.C. Memo.
1998-92, we found that petitioner’s records were inadequate for
1990, 1991, and 1992. In that case, we noted that before the
years at issue, petitioner was advised that his records were
inadequate. After repeated warnings by respondent, on June 9,
1995, petitioners agreed to and signed a records retention
agreement with the Internal Revenue Service. The agreement
specifically identified records that petitioner was to maintain
going forward. Despite the warnings and the agreement,
petitioner still made the choice not to maintain adequate
records. Further, we find significant petitioner’s testimony
that his practice of purchasing cashier’s checks was partly
designed to conceal large cash transactions from the Government.
Petitioners’ actions are not what a reasonable and
ordinarily prudent person would do under the circumstances and
constitute negligence. Accordingly, we hold that petitioner is
subject to the accuracy-related penalty under section 6662(a).
To reflect the foregoing,
Decision will be entered
under Rule 155.
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