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facility by the corporation as the owner. Moreover, from a legal
standpoint, even if respondent had passed upon the application of
sections 162(a) and 274(a)(1)(B) to expenses similar to those at
hand, the fact that respondent has previously examined a deducted
expense in one year, and not disallowed it, does not mean that
the expense is a proper deduction in another year. Fleischli v.
Commissioner, 123 T.C. , (2004). While the failure to
disallow a prior deduction may in certain cases give a taxpayer
reasonable cause for later claiming a similar deduction, such is
not the case where, as here, the record fails to establish that
the facts underlying the earlier deduction are similar to the
facts underlying the later deduction.
We sustain respondent’s determination as to the accuracy-
related penalties.
All of the parties’ arguments have been considered, and
those arguments not discussed herein have been found to be
without merit. To reflect concessions,
Decision will be entered
under Rule 155.
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