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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