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U.S. 1, 13 (1974).4
On the record before us, we find that petitioners have
failed to carry their burden of establishing (1) that they are
entitled for each of their taxable years 2000 and 2001 to deduct
the entire amount of the expenditures that they made during each
such year on the 40th Street property and the 8th Street property
and (2) that no portion of such expenditures must be capitalized
and amortized. On that record, we sustain respondent’s determi-
nations with respect to those expenditures.
Accuracy-Related Penalty
It is respondent’s position that petitioners are liable for
each of their taxable years 2000 and 2001 for the 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
4See also Basin Elec. Power Coop. v. Commissioner, T.C.
Memo. 2004-109.
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