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petitioners must amortize points deducted from the proceeds of
the refinanced mortgage loan over the life of the loan,
determined as of 2002, even if the loan was business-related.
See sec. 461(g)(1); Rubnitz v. Commissioner, 67 T.C. 621, 626-628
(1977); see also Schubel v. Commissioner, 77 T.C. 701 (1981).
In their posttrial memorandum, petitioners make various
additional assertions that they are entitled to a deduction for a
particular type of safety-related shoes used by Mr. Jackson in
his job. Assertions in a brief and attachments to a brief are
not evidence. Rule 143(b). In any event, their contentions are
contradicted by the documents that they produced to respondent
and at trial. Accordingly, petitioners have not satisfied the
requirements for an employee expense deduction. See Pevsner v.
Commissioner, 628 F.2d 467, 470 (5th Cir. 1980), revg. T.C. Memo.
1979-311.
Petitioners attempt to blame the problems with their tax
return on their tax return preparer. Their failure to maintain
and produce the required documentation to support their
deductions, however, is negligence that is not attributable to
the preparer. Rather, the deficiency resulting from disallowance
of the items in dispute is attributable to petitioners’
negligence or to petitioners’ disregard of rules or regulations
relating to those deductions. The penalty under section 6662
will be sustained.
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