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and cooperate fully with respondent’s reasonable requests.
Petitioner therefore bears the burden of proof.
With respect to the section 6662 penalty, pursuant to
section 7491(c), the Commissioner bears the burden of production
and must produce sufficient evidence showing that the imposition
of the penalty is appropriate in a particular case. Higbee v.
Commissioner, 116 T.C. 438, 446 (2001). Once the Commissioner
meets this burden, the taxpayer must come forward with persuasive
evidence that the Commissioner’s determination is incorrect.
Rule 142(a); Higbee v. Commissioner, supra at 447. To the extent
the taxpayer shows there was reasonable cause for an underpayment
and that she acted in good faith, section 6664(c)(1) prohibits
the imposition of a penalty under section 6662.
Education Expenses
As a general rule, section 162(a) authorizes a deduction for
“all the ordinary and necessary expenses paid or incurred during
the taxable year in carrying on any trade or business”.
Expenditures made by an individual for education are deductible
as ordinary and necessary business expenses if the education
maintains or improves skills required by the individual in her
employment or other trade or business. Sec. 1.162-5(a), Income
Tax Regs.
However, this general rule does not apply if the
expenditures fall within either of two specified categories,
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Last modified: March 27, 2008