Marcus V. and Polly A. Booker - Page 16

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          as belonging to Mr. Bell.  If the copies of the Forms 1096 for              
          both 1999 and 2000 petitioners admitted into evidence were                  
          authentic, it seems highly unlikely that the Social Security                
          Administration would mistakenly omit Mr. Bell’s information for             
          both years.  Respondent questioned the authenticity of the copies           
          of Forms 1096 for 1999 and 2000 petitioners admitted into                   
          evidence, and petitioners presented no proof the Forms 1096 were            
          actually filed for years 1999 and 2000.  In light of petitioners’           
          dubious record keeping and lack of clear and credible testimony,            
          the Court agrees with respondent’s conclusion that the copies of            
          Forms 1096 for 1999 and 2000 were not authentic.  Petitioners               
          presented no additional evidence, such as canceled checks,                  
          establishing the payments to Mr. Bell during these 2 years.                 
          Consequently, the Court sustains respondent on this issue.                  
          Petitioners are not entitled to any deduction for wages for 1999            
          and 2000 in excess of the amounts conceded by respondent.                   
               Respondent determined section 6662(a) penalties against                
          petitioners in the amounts of $2,751 for 1999 and $3,341 for                
          2000.  Section 6662 provides for the imposition of a 20-percent             
          penalty for the portion of any underpayment to which the section            
          applies.  Sec. 6662(a).  Respondent determined that section                 
          6662(b)(1) applied to petitioners because petitioners were                  
          negligent or disregarded rules or regulations.                              
               Negligence is defined as “any failure to make a reasonable             
          attempt to comply with the provisions of this title.”  Disregard            
          includes “careless, reckless, or intentional disregard”.  Sec.              

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