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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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