Benjamin O. & Linda L. Agbaniyaka - Page 21
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The record in this case does not contain any of the records that
Mr. Agbaniyaka testified he maintained.16 On the instant record,
we find that petitioners did not maintain the records required by
section 6001 and section 1.6001-1(a), Income Tax Regs. On that
record, we further find that the burden of production that
respondent has under section 7491(c) is satisfied. See sec.
1.6662-3(b)(1) and (2), Income Tax Regs.
In support of their position that they are not liable for
each of the years at issue for the accuracy-related penalty,
petitioners make the following argument on brief:
Taxpayers relied upon the knowledge gained by
Benjamin as an IRS Revenue Agent. Respondent charac-
terizes him as an expert when arguing that he acted
negligently in failing to follow the tax code and
regulations. Similarly, he should be accorded the
benefit of this expertise in claiming deductions which
are proper and allowable under the Internal Revenue
Code and based on the IRS policy and procedures and
that Benjamin is familiar with.
On the record before us, we reject petitioners’ argument.
During the years at issue, Mr. Agbaniyaka was a trained revenue
agent and was fully aware of the requirements imposed by section
6001. Nonetheless, petitioners failed to maintain sufficient
records for each of their taxable years 2001 through 2004 to
16The only documentation that petitioners introduced into
the record are copies of two American Express Business Gold Card
bills that showed a purchase on June 8, 2002, from “IMPORTS OF
AFRICA” of $1,200 and a purchase on June 25, 2002, from “IMPORTS
OF AFRICA” of $750. Respondent concedes that Mr. Agbaniyaka made
those purchases in 2002.
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Last modified: November 10, 2007