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similar provisions. * * * the taxpayer bears the burden of proof
with regard to those issues.” Id.
In the instant case, petitioners’ underpayment for each of
the years at issue is attributable solely to their claimed
gambling loss deduction for each such year. Petitioners concede
that they did not keep the records required by the Code to
substantiate each such loss deduction. Failure to keep adequate
records is evidence not only of negligence, but also of inten-
tional disregard of regulations. See sec. 1.6662-3(b)(1) and
(2), Income Tax Regs.; see also Magnon v. Commissioner, 73 T.C.
980, 1008 (1980). On the record before us, we find that respon-
dent has met respondent’s burden of production under section
7491(c). On that record, we further find that petitioners have
failed to carry their burden of showing that they were not
negligent and did not disregard rules or regulations, or other-
wise did what a reasonable person would do, with respect to the
underpayment for each of the years at issue.
On the record before us, we also find that petitioners have
failed to carry their burden of showing that there was reasonable
cause for, and that they acted in good faith with respect to, the
underpayment for each of the years at issue.12 See sec.
12On the instant record, we also find that petitioners have
failed to carry their burden of showing that the respective
underpayments for the years at issue are attributable to their
reliance on a professional, such as an accountant. See sec.
(continued...)
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