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expense deduction for preoperating expenses to be indicative of
the fact that petitioner’s position was not unreasonable and,
therefore, not negligent; and that, in any event, petitioner
acted in good faith and with reasonable cause in treating the
expenses listed on his 1997 Schedule C as ordinary and necessary
business expenses under section 162(a). See sec. 1.6664-4(b)(1),
Income Tax Regs.; see also Keller v. Commissioner, T.C. Memo.
1996-300 (college professor who improperly claimed a travel
expense deduction for a sabbatical trip during which he engaged
in study unrelated to the stated sabbatical purpose acted in good
faith and was not liable for the accuracy-related penalty where
there were no regulations or other forms of clear-cut guidance
specifying the reach of section 274(m)(2), which denies a
deduction for the expense of travel as a form of education).
Nor do we agree with respondent that negligence and
intentional disregard are shown by petitioner’s alleged failure
to maintain and produce books and records to support his claimed
Schedule C deductions as required by section 6001. It is not
always necessary that a taxpayer maintain a formal set of readily
auditable books in order to satisfy the books and records
requirement of section 6001 and section 1.6001-1(a), Income Tax
Regs. See Westby v. Commissioner, T.C. Memo. 2004-179. At
10(...continued)
background (other than in the preparation of his own returns) in
the area of Federal income taxation.
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