Ronald Z. Thompson - Page 6

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          and multiengine airplanes for compensation,3 qualified him to               
          serve as a second-in-command pilot for an airline,4 and enabled             
          petitioner to engage in a trade or business for which he was                
          previously unqualified.  Robinson v. Commissioner, 78 T.C. 550,             
          557 (1982); Bodley v. Commissioner, 56 T.C. 1357, 1361 (1971).              
          Therefore, this Court finds that petitioner’s commercial pilot              
          training was part of a program of study which qualified him for a           
          new trade or business, and the expenses paid in 2002 to attend              
          the program are nondeductible under section 162.  See sec. 1.162-           
          5(b)(3), Income Tax Regs.                                                   
               Respondent contends petitioner is liable for a section 6662            
          penalty because the underpayment of tax was attributable to                 
          negligence.  Section 6662(a) imposes a 20-percent accuracy-                 
          related penalty on the portion of any underpayment attributable             
          to negligence.  Sec. 6662(b).  The term “negligence” includes any           
          failure to make a reasonable attempt to comply with the                     
          provisions of the internal revenue laws or to exercise ordinary             
          and reasonable care in the preparation of a tax return.  Sec.               
          6662(c); sec. 1.6662-3(b)(1), Income Tax Regs.                              

               3 See Roussel v. Commissioner, T.C. Memo. 1979-125; 14                 
          C.F.R. sec. 61.133(a) and (b) (2002).                                       
               4 See 14 C.F.R. sec. 61.55 (2002).  Because petitioner did             
          not earn an airline transport pilot rating, he would not be                 
          allowed to captain an airplane for an airline company.                      

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