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and records. In effect, petitioner was using a claimed church as
his pocket book. Therefore, the Court agrees with respondent,
and the Center also fails the “private inurement” test of section
501(c)(3). Because petitioner’s contributions were to a
nonexempt organization, they are not deductible on his Federal
income tax return.6 Therefore, respondent is sustained on this
issue.
Respondent determined section 6662(a) penalties in the
amounts of $743.20, $496.60, $439.40, and $688.00 for the years
1998, 1999, 2000, and 2001, respectively. Section 6662 provides
for a 20-percent penalty for any underpayment to which the
section applies. Sec. 6662(a). Respondent determined that
section 6662(a) applied because petitioner was negligent or
disregarded rules or regulations. Sec. 6662(b)(1).
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.
6662(c). The entirety of petitioner’s deductions for the years
6Only a fraction of the amounts claimed as charitable
contributions on petitioner’s Federal income tax returns were in
the form of cash donations. The bulk of the deductions were for
payments petitioner made out of his personal bank account “on
behalf” of the Center, such as rent, natural gas and electricity
for petitioner’s personal residence, religious books, and office
supplies. Because the Court has denied the deduction of
contributions to the Center by petitioner, it is not necessary to
discuss the eligibility of the nature of petitioner’s
contributions.
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