- 31 -
adequate books and records and to properly substantiate the items
in question. E.g., Kikalos v. Commissioner, T.C. Memo. 2004-82.
We also hold that petitioner failed to satisfy his burden of
proof by demonstrating that he acted with reasonable cause and in
good faith. In part, we are led to this conclusion by the fact
that petitioner represents himself to be an accountant having his
own accounting firm, Creative Accountants, which prepares tax
returns. As an accountant, petitioner knows, or should know,
that one cannot ignore the strict substantiation requirements of
section 274(d) or the more general recordkeeping requirements of
section 6001. As an accountant, petitioner also knows, or should
know that: A taxpayer cannot generally deduct the expenses of
another taxpayer; a taxpayer cannot deduct legal expenses if such
expenses are essentially personal in nature; head-of-household
filing status may not be claimed if the taxpayer does not
maintain as his home a household which constitutes for more than
half of the taxable year the principal place of abode, as a
member of such household, of a son of the taxpayer; and, for
purposes of the earned income credit, a taxpayer’s son is not a
“qualifying child” unless the son has the same principal place of
abode as the taxpayer for more than half of the taxable year.
In view of the foregoing, we hold for respondent on this
issue.
Page: Previous 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 NextLast modified: May 25, 2011