Benjamin O. & Linda L. Agbaniyaka - Page 19

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               Based upon our examination of the entire record before us,             
          we find that petitioners have failed to carry their burden of               
          establishing that they are entitled to deduct student loan                  
          interest of $633 in determining adjusted gross income for their             
          taxable year 2003.                                                          
          Accuracy-Related Penalty                                                    
               It is respondent’s position that petitioners are liable for            
          each of their taxable years 2001 through 2004 for an accuracy-              
          related penalty under section 6662(a) because of negligence or              
          disregard of rules or regulations under section 6662(b)(1).                 
               The term “negligence” in section 6662(b)(1) includes any               
          failure to make a reasonable attempt to comply with the Code.               
          Sec. 6662(c).  Negligence has also been defined as a failure to             
          do what a reasonable person would do under the circumstances.               
          See Leuhsler v. Commissioner, 963 F.2d 907, 910 (6th Cir. 1992),            
          affg. T.C. Memo. 1991-179; Antonides v. Commissioner, 91 T.C.               
          686, 699 (1988), affd. 893 F.2d 656 (4th Cir. 1990).  The term              
          “disregard” includes any careless, reckless, or intentional                 
          disregard.  Sec. 6662(c).                                                   
               Failure to keep adequate records is evidence not only of               
          negligence, but also of intentional 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).                           
               The accuracy-related penalty under section 6662(a) does not            

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