Performing Artist's Tax Deductions Questioned

degree of probative value to elevate such statement'" to the purchased at drama books. according to petitioner's testimony, section 212 generally allows deduction of ordinary and necessary - 19 - greater than those relating to the play. accordingly, we sustain disallowance of a deduction for that publication. of backstage, and we, therefore, sustain respondent's no evidence of the costs of individual classes. petitioner performing artist. according to petitioner: "one of the $5,000.16 would not have to pay for them in cash. we will not estimate 886-a, explanation of items, attached to the notice of to make an estimate of additional tax preparation expenses beyond as to the failure to file addition to tax, section substantiated them. landline telephone expenses and internet service provider receipts totaling $248 for the year in issue. we conclude that accordingly, sec. 7491(a)(1) does not apply to petitioner's claim $1,600. petitioner testified that he claimed meals expenses of miscellaneous itemized deductions. petitioner also claimed as petitioner offered pictures of his audio equipment used in reduced to $15,313 by the 2-percent-of-adjusted-gross-income disallowed by respondent in the form 5278, statement - income tax charges from rcn listed as being for cable, internet, and phone property would be "listed property" subject to the heightened deduction for unreimbursed employee business expenses claimed on position or (2) has substantial authority for the tax treatment of the ultimately determined tax if the failure to file does not expenses. petitioner failed to offer testimony or documentary united states tax court petitioner testified that he relied on the advice of his tax offer any testimony or documentary evidence for meals expenses specific advice of a tax return preparer may constitute we conclude is an ordinary and necessary business expense. see however, a precise correlation is not necessary. boser v. information in detail as to such element" and by "other generally, the commissioner's determination of a deficiency to prove that his services were performed for a qualified donee petitioner offered the original tape and a copy of the 11 regarding the voice-over classes. section 7491(c), and petitioner bears the burden of proof. see with reasonable cause and in good faith. sec. 6664(c)(1). the tax court rules of practice and procedure, and all section 3 deductions are a matter of legislative grace, and generally additionally, petitioner testified that the classes occurred - 23 - generally, a deduction is disallowed for travel expenses, meals taxpayer's own statement. sec. 274(d). to satisfy the adequate the 50-percent limitation of sec. 274(n)(1). connected with or pertaining to the taxpayer's trade or testimony or documentation regarding the costs of the audio records requirement, a taxpayer must maintain records and categories of expenses. sanford v. commissioner, 50 t.c. 823, at the time the petition was filed, petitioner lived in services for a total of $205.11 that he is entitled to any deduction for them. substantiation to make an estimation of his schedule c expenses, petitioner provided a receipt for tax preparation fees from 2001 employer, or the requirements of applicable law or cellular telephone expenses and, therefore, sustain respondent's - 21 - accordingly, respondent has met his burden of production. - 12 - petitioner's federal income tax of $8,153 for 2003, a failure to landline telephone expenses and internet service expenses. provide any documentary evidence showing the amount paid, or, if business". sec. 1.162-1(a), income tax regs. additionally, the court may estimate a taxpayer's deductible expenses, provided (continued...) personal expense pursuant to section 262(a), as opposed to his requirements for artists, for continuing employment, is steady from petitioner exceeds the $3,321 reported. given the with all substantiation requirements, including those of section larson v. commissioner, supra; sec. 1.274-5t(c)(3), temporary 503 u.s. 79, 84 (1992). section 162(a) permits "as a deduction pursuant to the cohan doctrine. however, petitioner failed to 1.170a-1(g), income tax regs. additionally, petitioner failed to petitioner contends that we can use his limited and computer peripheral equipment. see sec. 280f(d)(4). such circumstances. sec. 1.6664-4(b)(1), income tax regs. relevant (1) maintains or improves skills required by the the strict substantiation requirements of section 274(d) must be the performance of charitable services as long as there is not a significant element of personal pleasure, recreation, or vacation as to petitioner's claimed unreimbursed employee business schedule c, such as cellular telephone expenses that fit into his expenses incurred before june 2003 were inadequate. 12 as to the classes at hb studios, petitioner provided $640, uniform cleaning of $2,250, emergency cab fares of $1,860, (1972), affd. per curiam 487 f.2d 1025 (9th cir. 1973); sec. over classes. then determine whether any further estimation, pursuant to the he purchased ross reports, monthly for $8 per issue, and employment tax and allowed a corresponding self-employment tax generally, a taxpayer must keep records sufficient to establishes the amount of business use of the property. kinney if findings of fact commissioner, supra; sec. 1.274-5t(c)(2)(i), temporary income tax 52nd street project, claims to be a "non-profit organization". petitioner's expenses for audio equipment fail to meet general petitioner's claimed deduction for cellular telephone wells, judge: respondent determined a deficiency in 3 and its corresponding deduction are computational and will depend petitioner provided an advertisement for the play in which however, the total amount of petitioner's itemized deductions was arrived at the numbers he claimed as deductions on schedule c. t.c. 731, 743 (1985). return by the date prescribed (determined with regard to any statements reveal monthly charges from at&t wireless, and he voice-over work by recording the proposed job on his home studio individual of an established employment relationship, determination as to those expenses. parties and, to the extent we have not addressed them herein, we specific category but could belong in multiple categories, such we will not estimate deductible expenses unless the taxpayer home must meet the heightened substantiation requirements of and claimed that his tax preparation fees for 2003 must have been failed to provide evidence substantiating any payments for issues deductible expense unless the taxpayer presents sufficient we therefore order below that the decision will be entered during tax year 2003. on the basis of the foregoing, we conclude listed property. generally, deductions for expenses subject to of the item. sec. 6662(d)(2)(b). opinion cellular telephones of $2,670, studio expenses of $3,410, and after june 2003. additionally, his efforts at re-creating his the books were used in the voice-over classes discussed above. expenses; however, even if those expenses should have been 2001-132. strict substantiation therefore does not apply, and cause for his disallowed deductions. secs. 6662(d)(2)(b), the greater of 10 percent of the tax required to be shown on the memorandum findings of fact and opinion expense, bearing heavily against the taxpayer whose inexactitude commissioner, 85 t.c. 731, 743 (1985). - 17 - it was due. see crocker v. commissioner, 92 t.c. 899, 913 however, the failure to file addition to tax is not imposed if in the taxpayer's business are disallowed unless a taxpayer petitioner claimed on schedule c a deduction for other expenses testified that he occasionally prepaid for the classes so that he we conclude that petitioner may deduct $248 for classes at hb such expenses are subject to heightened substantiation 10 professional books and catalogs of $520, tuition of $2,830, - 20 - that he relied on his tax return preparer are not sufficient to that the court has a reasonable basis for making an estimate. memo. 1996-308; sec. 1.170a-1(g), income tax regs. as proof of 827-828 (1968), affd. per curiam 412 f.2d 201 (2d cir. 1969). the taxpayer can establish that such failure is due to reasonable conclude that petitioner's expenses for the classes are ordinary memo. 2002-42, affd. 54 fed. appx. 479 (9th cir. 2003); sec. order to shift the burden of proof. however, most of the issues schedule a. offers sufficient evidence to provide some basis upon which an equipment and then emailing the talent agency the digital files. $16,327 in miscellaneous itemized deductions on schedule a. he was involved. on the advertisement, the organization, the 15 income tax regs., 50 fed. reg. 46016 (nov. 6, 1985). tax return. sec. 6001; sec. 1.6001-1(a), (e), income tax regs. personal and business expenses. we will not estimate a through no fault of his own. while a taxpayer's reliance on the care and prudence but nevertheless could not file the return when status, or rate of compensation. amount and bear a reasonable and proximate relationship to the production or collection of taxable income. id. however, a of his duties does not establish that its cost is a deductible understatement penalty unless he can show reasonable cause, consider them moot, irrelevant, or without merit. as to the remaining expenses not specifically discussed his eligibility for the transportation expenses, petitioner his return is not reasonable. no particular expertise is t.c. memo. 2010-152 from business, of his return for the year in issue and whether he substantiation he offered to estimate his expenses under the to the extent that petitioner claimed additional tax - 5 - 1.262-1(b)(9), income tax regs. ("expenditures * * * are not education of the taxpayer may indicate reasonable cause and good documentary evidence that in combination are sufficient to of an underpayment of tax attributable to a substantial deductions for listed property that is used both personally and nathan e. lang, pro se. petitioner contends that the burden of proof regarding the theater. we interpret "theater" to include petitioner's voice- miscellaneous itemized deductions expenses for union dues of $202 2003 for rehearsals. generally, expenses for meals away from at 743. accordingly, we sustain respondent's determination $3,321. the record establishes that the total amount of tax due weekly and that they were helpful. see boser v. commissioner, continued improvement of skills required in his business as a nathan e. lang, petitioner v. to this deduction. see sec. 7491(a)(2)(a). see sec. 274(d); sec. - 4 - and entertainment, and listed property unless the taxpayer claimed deduction for telephone and cellular telephones, while respondent's disallowance of petitioner's transportation the amount deducted was $15,313. the total amount of $15,313 was cause, the taxpayer must show that he exercised ordinary business commissioner, supra at 743. deductions conceded by respondent and allowed in the instant analyze petitioner's substantiation by individual receipts and others, such as expenses for trade newspapers, do not fit into a prove that his volunteer work was in service to a qualifying other expenses claimed on schedule c beyond those specifically can be decided on the basis of the record in the instant case.6 subject to the requirements of section 274(d). sanford v. determined given our holdings above, respondent will have met his the stipulations of fact are incorporated in this opinion by do not estimate under the cohan doctrine expenses that are estimate may be made. vanicek v. commissioner, supra at 743. in the case of meals and entertainment, the business relationship as claimed deductions for books and stationery, supplies, actor's and necessary business expenses and petitioner should be allowed prohibited under sec. 1.162-5(b), income tax regs. commissioner, supra at 1131. substantiate a deduction of $248. however, the record contains deductions claimed. sec. 6001; indopco, inc. v. commissioner, section 274(d) supersedes the cohan doctrine for certain expenses for meals were incurred while he was "away from home" or provider expenses, according to petitioner's testimony the receipts for ross reports which show a cost of $8 per issue petitioner offered receipts for the voice-over classes vanicek v. commissioner, 85 t.c. at 743. for 1 hour every tuesday from september 16 through december 9, regs., 50 fed. reg. 46017 (nov. 6, 1985). a contemporaneous log those requirements. sanford v. commissioner, supra at 827-828; form 1040, u.s. individual income tax return, as graphics. schedule a, itemized deductions, and schedule c, profit or loss deduction for meals and entertainment of $1,600.5 required to be shown on the return over the amount of the tax taxpayer offers sufficient evidence to provide some basis upon expenses is subject to the heightened substantiation requirements deficiency respondent disallowed petitioner's claimed - 9 - taxpayer's burden of proof where the taxpayer has not complied a deduction for those expenses to the extent that he has bearing dates from calendar year 2001. however, petitioner return preparer as to his claimed deductions and that his lack of taxpayer's reconstruction of the expenditure "`must have a high the year in issue. all amounts are rounded to the nearest whole claimed expenses were "70 to 80%" for business purposes. changes, attached to the notice of deficiency. however, the form decision will be entered tax regs. petitioner failed to offer any documentary evidence or business. consequently, we hold that petitioner may deduct $34 on schedule c of his 2003 return, petitioner claimed a v. commissioner, t.c. memo. 2008-287; olsen v. commissioner, t.c. allowed above. petitioner testified that petitioner may deduct $96 for ross reports magazine, which it incorrect. rule 142(a); welch v. helvering, 290 u.s. 111, 115 individual in his employment or other trade or business; or - 8 - commissioner of internal revenue, respondent deduction for his audio equipment.12 disclosed his or her position and has a reasonable basis for such (1989). respondent bears the burden of production pursuant to respondent's denial of a deduction for meals claimed on $15 a day relating to a play for which he volunteered his level of credibility of a contemporaneous record. larson v. requirements. see secs. 274(d), 280f(d)(4). petitioner's bank the taxable year in carrying on any trade or business". to be of tax-deductible contributions. we, therefore, sustain information as well as casting calls. petitioner testified that casting directors.10 miscellaneous itemized deductions of $15,313.4 tax return or $5,000. sec. 6662(d)(1)(a). the understatement is to the play under either section 274(d) or section 1.170a-1(g), $1,631.1 improves skills required by the taxpayer in his business is a 5 postage of $684, books and stationery of $620, supplies of business expense. joseph v. commissioner, supra. taxpayers must corroborative evidence sufficient to establish such element." sec. 6662(d)(2)(a). 3 days that the play was performed, december 12, 13, and 14, and cohan doctrine. however, as discussed above, petitioner failed made. vanicek v. commissioner, supra at 743. additionally, any on his 2003 federal income tax return petitioner listed his issue. we will not estimate deductible expenses unless the as to petitioner's claimed expenses for cellular telephone, all the ordinary and necessary expenses paid or incurred during backstage, weekly for $2 per issue. petitioner offered two burden of production and petitioner will be liable for the cohan v. commissioner, 39 f.2d at 543-544. however, petitioner the taxpayer presents sufficient evidence to provide some basis 2003, petitioner paid rcn $111. the court has characterized internet service provider 46016 (nov. 6, 1985). petitioner's reliance on his tax return preparer to timely file deduction for unreimbursed transportation expenses incident to monthly trade newspapers that contained detailed industry category does not appear on petitioner's return. evidence specifically relating to his unreimbursed employee taxpayers may substantiate their deductions by either united states v. boyle, 469 u.s. 241, 251 (1985). consequently, 16 or the specific advice he relied upon. see sec. 1.6664-4(b)(2), expenses, they include expenses for uniforms of $920, shoes of on the basis of the foregoing, accordingly, we sustain respondent's denial of deductions for reduced to the extent that the taxpayer has (1) adequately expenses as utility expenses. verma v. commissioner, t.c. memo. in such travel. sec. 170(j); cavalaris v. commissioner, t.c. offered solely his testimony. as noted above, petitioner failed adequate records or sufficient evidence that corroborates the educational books and supplies of $2,780, supplies and equipment review of petitioner's bank statements reveals two separate extension of time for filing). the addition to tax is 5 percent donee of tax-deductible contributions.9 - 11 - amount, we generally may estimate the amount of the deductible additionally, the burden of proof is determinative only when see vanicek v. of $202, unreimbursed employee business expenses of $15,700, and expenses. 1983); joseph v. commissioner, t.c. memo. 2005-169. the fact petitioner testified that he spent $700 on the design of his substantiation requirements of sec. 274(d). however, because as proof of the design expenses. however, petitioner failed to on petitioner's schedule c, he listed his business as requirements of sec. 170(c)(2). (1982), affd. without published opinion (9th cir., dec. 22, deficiency, mentions only unreimbursed employee expenses. additionally, at trial respondent did not dispute the we sustain respondent's denial of petitioner's deduction for petitioner's audio equipment appears to include computers 1 that petitioner's expenses for the video-to-dvd transfer are business. thus, deductions associated with the classes are not - 13 - internet and telephone costs, which would, if anything, be mixed alternatively establish an element of an expenditure by "his own petitioner failed to prove that the 52nd street project meets the substantiation fits neatly into the categories claimed on establish each element of an expenditure or use. larson v. to specify which of the receipts that he offered substantiate the petitioner offered a receipt for $34 for the transfer of a the education either: substantiation of his expenses should be placed on respondent deduction for trade or business expenses must be reasonable in is not required, but corroborative evidence used to support a testimony adequate to substantiate his meals expenses that relate failed to provide adequate records or other sufficient evidence the accuracy-related penalty is not imposed with respect to additionally, petitioner is a performing artist who engages in it was paid, when it was paid. see vanicek v. commissioner, 85 deductible expenses unless the taxpayer offers sufficient expenses for the play, discussed above, for which he volunteered 1.274-5t(b)(6)(i)(b), temporary income tax regs., 50 fed. reg. higbee v. commissioner, 116 t.c. at 446. evidence to provide some basis upon which an estimate may be factors include the taxpayer's efforts to assess his proper tax disallowed in full unless the taxpayer satisfies every element of the classes do not qualify petitioner for a new trade or 7 meals and entertainment expenses and other expenses. petitioner admitted failing to file a timely return. section 6651(a)(1) and the accuracy-related penalty pursuant to - 3 - business expenses that he claimed on schedule a. accordingly, petitioner timely filed a petition with this court. additionally, petitioner testified that the total amounts of - 2 - is liable for the failure to file addition to tax pursuant to deduct $67 for books purchased at drama books used in his voice- gross-income limitation was applied pursuant to section 67(a), specifically disallowed the unreimbursed employee expenses of expense for basic local telephone service with respect to the petitioner also claimed deductions for various classes.13 particular expenses claimed on schedule c. some of his petitioner also claimed $22 per day for local transportation business purposes, for a total of $453. however, petitioner artist who engages in "voice-over" and "on-camera" work.3 but it does not meet the requirements of sec. 274(d). on the court's resolution of the issues discussed herein. $1,891, actor's miscellaneous items of $5,320, telephone and petitioner testified that these receipts substantiated his 6662(a) and (b)(2) imposes a penalty of 20 percent on the portion pursuant to section 7491(a). section 7491(a) does not alter the that a taxpayer's education is helpful to him in the performance of $3,760, and telephone service of $740.8 docket no. 20117-08. filed july 14, 2010. "voice-over" and "on-camera" work. the record does not establish show that there is a direct and proximate relationship between deductible unless they qualify under section 162 and � 1.162-5 is reasonable in the light of the experience, knowledge, and some of the facts and certain exhibits have been stipulated. petitioner testified that he relied on his tax return preparer to regarding the cost of his internet web site. we, therefore, $15,700. - 10 - 6664(c)(1). petitioner testified that he lost a portion of his substantiation requirements, we need not address whether they deductibility of the union dues or the tax preparation fees. petitioner failed to offer any on his 2003 return petitioner reported total tax due of deduction in the notice of deficiency. the self-employment tax income tax regs., 50 fed. reg. 46020 (nov. 6, 1985). however, we according to petitioner's testimony, he transferred the audition understatement of income tax.15 rendition of services to a charitable organization may constitute any portion of the underpayment as to which the taxpayer acted to corroborate his claimed 40-percent business use. see sec. commissioner, supra at 827; larson v. commissioner, supra. on oct. 17, 2003, petitioner paid rcn $94, and on dec. 10, 9 upon which an estimate may be made. vanicek v. commissioner, 85 temporary income tax regs., 50 fed. reg. 46014 (nov. 6, 1985). - 15 - 6 a substantial understatement of whether petitioner introduced credible evidence on that issue in petitioner also offered receipts for various acting books (2) meets the express requirements of the individual's these receipts and petitioner's testimony are sufficient to study and technique concentration classes at hb studios from 1 the education expenses and the skills required in their business; 13 substantiation, we give little credence to his testimony ordinary and necessary expenses of petitioner's voice-over "understatement" means the excess of the amount of the tax woodside, new york. of $16,275. respondent denied all of petitioner's deductions for for the media transfer. tax preparation fees of $425, for a total miscellaneous itemized we sustain respondent's determination denying petitioner's on schedule c petitioner claimed a deduction for meals of particular expenses claimed on schedule c. indeed, petitioner internet web site. petitioner offered printouts of his web site higbee v. commissioner, 116 t.c. 438, 442-443 (2001). prove a reasonable basis, substantial authority, or reasonable receipts for his claimed deductions during june 2003. however, cause and not due to willful neglect. id. to prove reasonable properly substantiates: (1) the amount of such expense; (2) the items, attached to the notice of deficiency, respondent failed to offer any documentation that corroborates his testimony evidence regarding the qualifications of his tax return preparer evidence of the cost of cable, which would be a nondeductible specify which of the receipts that he offered substantiate the petitioner claimed deductions on schedule a for union dues expenses were documented through his bank statements. however, a if the understatement is greater than $5,000, as 7 training workshops of $1,680. as noted above, petitioner listed his occupation on his reference and are found accordingly. is presumed correct, and the taxpayer has the burden of proving his voice-over business. however, petitioner failed to provide equipment. accordingly, we sustain respondent's denial of a taxpayer's residence and place of business are personal expenses, section 274(d). however, unreimbursed expenditures, including statement, whether written or oral, containing specific evidence to provide some basis upon which an estimate may be id. furthermore, an honest misunderstanding of fact or law that (1933). question of fact. boser v. commissioner, 77 t.c. 1124, 1131 reg. 46016 (nov. 6, 1985). we conclude that petitioner has limitation pursuant to section 67(a). in the notice of first telephone line to a residence is treated as a nondeductible a charitable contribution deduction. sec. 1.170a-1(g), income sec. 1.162-5(a), income tax regs. whether education maintains or amount above the $425 that we deem conceded by respondent. (...continued) voice-over copy reading classes with jennifer duckworth and kevin consequently, we hold that petitioner is liable for the accuracy- between the taxpayer and the persons being entertained. sec. improvement." accordingly, we conclude that petitioner's - 6 - dollar. and an accuracy-related penalty pursuant to section 6662(a) of file addition to tax pursuant to section 6651(a)(1) of $1,780, expenses paid or incurred during the tax year for the production petitioner finds his voice-over and on-camera work through talent commissioner, supra (quoting section 1.274-5t(c)(1), temporary accordingly, we deem the deductibility of the union dues and the according to petitioner's testimony, he purchased weekly and under rule 155. that the receipts he offered were for his schedule c business - 7 - expenses for meals while away from home, made incident to the faith. see remy v. commissioner, t.c. memo. 1997-72. petitioner testified that the classes are essential to additionally, sustain respondent's disallowance of petitioner's claimed expense regulations, imposed as a condition to the retention by the references are to the internal revenue code (code), in effect for the notice of deficiency, respondent disallowed $15,313 of in the event that a taxpayer establishes that a deductible cohan v. commissioner, 39 f.2d 540, 543-544 (2d cir. 1930). we 8 classified as schedule c expenses, petitioner has failed to show 2 14 taylor from 10 a.m. to 12 noon, and saturday afternoon skill which an estimate may be made. vanicek v. commissioner, 85 t.c. month the failure continues, up to a maximum of 25 percent. id. generally will not estimate a deductible expense, however, unless regarding the cost of the voice-over classes for the year in under rule 155. reasonable cause, petitioner has failed to offer testimony or - 18 - 274(d); sec. 1.274-5t(b)(6), temporary income tax regs., 50 fed. - 16 - income tax regs. petitioner's testimony does not prove that the the court has considered all other arguments made by the studios. in the absence of adequate records, a taxpayer may failed to meet the heightened substantiation requirements for his those conceded by respondent for tax year 2003. see vanicek v. petitioner provided limited substantiation of expenses incurred 185, 189 (2008). when there is an evidentiary tie, we consider preparation fees at trial, petitioner failed to substantiate any respondent determined that petitioner is liable for self- on schedule a of his 2003 federal income tax return to a dvd so that it could be easily viewed by producers and if the understatement of his income tax exceeds $5,000. p.m. until 5 p.m. expenditures made by a taxpayer for education testified that 40 percent of his cellular telephone use was for would have met the requirements of sec. 274(d). or collection of income. sec. 1.212-1(d), income tax regs. the and, therefore, are nondeductible. sec. 262(a); sec. 1.262- as to the substantial understatement penalty, section itemized deductions. however, on form 886-a, explanation of petitioner's schedule c. 1(b)(5), income tax regs. however, taxpayers are allowed a michelle maniscalco, for respondent. section 6662.2 addition to tax pursuant to section 6651(a)(1). unless otherwise indicated, all rule references are to the substantiation was due to the loss of many of his receipts the issues remaining to be decided relate to (...continued) his services. generally, commuting expenses between the work with auditioning, performing, training, and self- in substantiating the amount of the expense is of his own making. that petitioner was employed for purposes of the claimed miscellaneous expenses, or studio expenses. accordingly, we will above, petitioner contends that we may use the limited of sec. 274(d). petitioner has offered limited substantiation, reasonable basis, or substantial authority. deduction expense of $16,327. after the 2-percent-of-adjusted- larson v. commissioner, t.c. memo. 2008-187; sec. 1.274-5t(a), according to petitioner's testimony, he attended saturday morning higher. however, such speculative evidence is inadequate for us there is an evidentiary tie. knudsen v. commissioner, 131 t.c. exceed 1 month, with an additional 5 percent per month for each accordingly, we conclude that petitioner should be allowed to t.c. at 743. additionally, given petitioner's overall lack of petitioner's entitlement to deductions that he claimed on taxpayers bear the burden of proving their entitlement to the over and on-camera work. on his return, petitioner failed to apply to this amount - 22 - 4 services. petitioner testified that his involvement was for the time and place of the expense; (3) the business purpose; and (4) and in good faith depends upon all of the pertinent facts and dvd. (continued...) as to petitioner's landline telephone and internet service we hold that petitioner is liable for the failure to file 274(d). section 280f(d)(4) includes cellular telephones as taxpayer may not deduct personal expenses. sec. 262(a). expense has been paid but is unable to substantiate the precise proceeding, the understatement may or may not be greater than required by the code. sec. 7491(a)(2)(a) and (b); see also occupation as graphics. additionally, petitioner is a performing on schedule c petitioner also claimed a deduction for other on the basis of the foregoing, we conclude on form 5278, statement - income tax changes, attached to 274(d), and where the taxpayer has not maintained all records reliance on the advice of a professional such as an accountant. imposed which is shown on the return, reduced by any rebate. made. id. accordingly, on the basis of the foregoing receipts, cohan doctrine, is warranted. expenses for "performing classes and expenses"; however, this 6651(a)(1) imposes an addition to tax for failure to file a are deductible, with certain exceptions not relevant here,14 recorded audition from video tape to a digital video disc (dvd). liability, including the taxpayer's reasonable and good faith deductible, ordinary and necessary expenses must be "directly example (1), income tax regs. petitioner's general statements personal expense. sec. 262(b). on the basis of the foregoing, [, income tax regs.]"). on the basis of the foregoing, we agencies nationwide. normally, petitioner auditions for the income tax is defined as an understatement of tax that exceeds timely file his return or request an extension. however, tax preparation fees conceded by respondent.7 - 14 - petitioner claimed unreimbursed employee expenses of $15,700 as expenses of $16,275. expenses included in that amount are for participation in the classes maintained or improved his skills. decision as to whether the taxpayer acted with reasonable cause necessary to know that returns are due at prescribed times. see and tax preparation fees of $425. petitioner claimed a total of failed to provide the court with any evidence as to how he supra at 1132-1133; ford v. commissioner, 56 t.c. 1300, 1305-1307 related penalty pursuant to section 6662(a) for taxable year 2003 establish the amounts of the items reported on his federal income for internet web site design.