- 9 -
petitioners must be able to substantiate the amount claimed. See
sec. 6001; sec. 1.6001-1(a), Income Tax Regs.
Petitioners provided no documentation before, during, or
after trial, such as canceled checks, that would substantiate
their claim that they made payments of home mortgage interest in
excess of the $10,123 allowed by respondent for 2002. At trial,
Mr. Berryman did not testify as to any specific payments of home
mortgage interest and included as an exhibit the Forms 1098,
Mortgage Interest Statement, only for taxable years 2003 and
2004. Accordingly, without any evidence that petitioners
actually paid the $1,462, we sustain respondent’s adjustment with
respect to petitioners’ 2002 itemized mortgage interest
deduction.
C. Section 6662(a) Accuracy-Related Penalties
Finally, we address respondent’s assertion of penalties
under section 6662(a) and (b).3 Section 6662(a) and (b)(1)
provides that if any portion of an underpayment of tax is
attributable to negligence or disregard of rules or regulations,
there shall be added to the tax an amount equal to 20 percent of
the amount of the underpayment that is so attributable. The term
3Respondent bears the burden of production with respect to
the accuracy-related penalties. Sec. 7491(c). In order to meet
this burden of production, respondent must produce sufficient
evidence that it is appropriate to impose the accuracy-related
penalties. Once respondent has done so, the burden of proof is
upon petitioners. Higbee v. Commissioner, 116 T.C. 438, 449
(2001).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: November 10, 2007