T .C. Su m m ary Op i n io n2 01 8 -3 7
UNITED STATES TAX COURT

D ANIEL CAM PBELL AND TERRI CAM PBELL, Pet i ti o n ers v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 2 3 8 65 -1 5 S. Fi l edJ u l y 1 2, 2 0 18
.

Dan i el Cam

p b el l an dTerri Cam

p b el l , p ro s es e. M i ch ael Fran ci s O’ Do n n el l an d As h l ey Swi ck(s tu d en t ), fo r res p on d en t .

SUM M ARY OPINION CARLUZZO, Ch i ef Sp eci al Tri al J u d g e: Th i s cas e was h eardp u rs u an tt o th e p ro v i s i o n s o f s ect i o n 7 4 6 3 o f t h e In t ern al Rev en u e Co d e i neffect wh en th e p et i t i o n was fi l ed
. 1 Pu rs u an t t o s ect i o n7 4 6 3(b ), th e d eci si on t o b e en t eredi s n o t

1 Un l es s o th erwi s e i nd i cat ed , s ect io nreferen ces are t o t h e In t ern al Rev en u e Co d e o f 1 9 8 6 as am en d ed , i n effect fo r t h e y ears i ni s s u e, an dRu l e referen ces are t o the Tax Co u rtRu l es o f Pract i ce an dPro cedu re.- 2
-

rev i ewab l e b y

an y o ther co u rt , an d t h i s o p i n i o ns h al l n o tb e t reat ed as p reced en t fo r an y o th er cas e. In a n o t ice o f d efi ci en cy d at edJ u n e 1 5 , 2 0 1 5 (n o t i ce), res p o nd en t d et erm i n edd efi ci en ci es i n , an dp en al t i es wi th res p ectt o , p et it i o n ers ’ Fed eral i n co m e t ax as fo l l o w s : Pen al ty Year Defi ci en cy s ec. 6 6 6 2 (a) 2 0 12 $ 5 ,0 65 $ 1 ,0 1 3 .0 0 2 0 13 5 ,5 8 2 1 ,1 1 6 .4 0 Aft er co n ces si o ns , 2 th e i s s u es fo r d eci si o nfo r each y ear are wh et her p et i t i o n ers are: (1 ) en t i t l edt o v ari o u s d edu ct i o n s cl ai m edo n a Sch edu l e A, It em i zedDedu ct i o n s , an d(2 ) l i ab l e fo r a s ect i o n6 6 62 (a) accu racy -rel at edp en al ty .

2 Res p o n d en tco n ced es th atp et it i on ers are en t it l edt o a d edu ct i on fo r u n i o n du es fo r each o f t h e y ears i n i s s u e i nan am o u n t th atwi ll b e refl ect edi n t h e p art i es ’ Ru l e 1 5 5 co m

p u t at i o n s . Pet i t i o n ers co n ced e al l o f t h e rem ai ni n g ad ju s t m en t s res p o n den tm ad e i n th e n o t i ce ex cep tfo r: (1 ) t h e d i s al l o wan ce o f t he d educt i o n s cl ai m edfo r M r. Cam p b el l ’ s (p et i t i o n er) u n rei m b u rs edem

p l o y ee b u s i n es s ex p en s es as d es cri b edo nFo rm s 2 1 0 6 , Em p lo y ee Bu s i n es s Ex p en s es ; (2 ) t h e d i s al l o wan ce o f t h e d edu ct i o n s cl ai m edfo r p et i t i on er’ s “ [u ] ni fo rm ” cl ean i n g ; an d(3 ) th e i m

po s i t io n o f t h e s ec. 6 6 6 2 (a) accu racy -rel at edp en al t i es .- 3
- Back gro u n d So m e o f t h e fact s h av e b een s ti p u lat ed an dare s o fo u n d. Atth e t i m e t h e p et i t i o n was fi l edan d atal l t im es rel ev an th ere, p et i t i o n ers res i d edi nNew Len o x , Il li n o i s , wi th i n th e Ch i cag o , Il l i n oi s , m et ro p o li t anarea. Du ri n g th e y ears i n i ss u e p et i t i o n er was em p lo y edb y M i dwes tFi rep ro o fi n g , LLC (M i dw es t ), t o i n s t al l fl am e-ret ard an ti n su l at i n g m at eri al s i nn ew b ui l d i n g s
an d l arg e ren o v at i o n p ro

ject s . M i dwes t ’ s reco rd s s h o wthe d at es , cl ien t s , an d l o cat io n s o f p et i t i o ner’ s as s i g n m en t s , n o n e o f wh i ch l as t edfo r m ore t h an a few week s . He was s el d o m

req u iredt o b e p res en tatan y o f M idwes t ’ s o ffi ce/b u s i n es s l o cat io n s . In s tead , h e ro u ti n el y wo rk edatv ari o u s t em

p o rarywo rk s i tes i n th e Ch i cag o m et ro p o l i tan area, ex cep tfo r a fo u r-week p eri odi n2 0 1 2 wh en h e wo rk ed i n St . Lo ui s , M i s s o u ri , an da fi v e-week p eri odi n 2 01 3 wh en h e wo rk edi nAl t o n , Il li n o i s (d i s t an two rk s it es ). 3 Du ri n g th e y ears i n i ss u e p et i t i o n er o wn eda h al f-t on p i ckup tru ckthath e
u s ed to tran s p o rth i m s el f an dwh at ev er t o o ls an dequ ip m en t were req u i redfo r an
as s i g n m en t . Wh en wo rk i n g in th e Ch i cag o m et ro po l i t an area, p et i ti o n er dro v e h i s

3 Acco rd i n g t o a Sep t em

b er 2 5 , 2 0 1 4 , l et t er fro m

p et i t i o ner’ s em

p l o y er: “ Th e m ajo ri ty

o f * * * [p et i t i o n er’ s] wo rk s i t e [s i c] are l ocat edi nth e Ch i cag o l an d area”. Th e d i s tan two rk s i t es are l o cat ed “ away ” fro m p et i t i o n er’ s “ ho m e” wi th i n th e m ean i n g o f s ec. 1 6 2(a)(2 ).- 4
-

tru ckb et ween h i s res i d en ce an dh i s then -cu rren two rk si t es . On ce a weeko nh i s way t o a wo rk s i te h e s to p p ed t o p i ck up m at eri al s an d/ or eq u ip m en tfro m a M i dwes twareh o u s e. Wh en p et i t i on er wo rk edata d is t an two rk s i t e, h e d ro v e t o th e wo rk si t e atth e b eg i n n in g o f t h e week , s t ay edata h o tel du ri ng th e wo rkweek , an d retu rn edt o h i s h o m e fo r t h e week en d
. Wh i l e wo rk i ng at th e d i s t an two rk s i t es p et i t i o n er was en t i tl ed t o an d recei v eda $ 7 0 -p er-d ay

trav el al l o wan ce. M i dwes td i dn o to th erwi s e co m pen s at e
o r rei m b u rs e p et i t i o n er fo r l o d g i n g , m eal s , o r o th er t rav el ex p en s es fo r an y o f h i s
wo rkas s ig n m en ts . Pet i ti o n er d i dn o tm ai nt ai n a m i l eag e l og o r l o g s du ri n g t h e y ears i n i s s u e, an dh e d i d n o t ret ai nan y recei p t s th ats h ow l o d g i n g an dm eal s
ex p en s es h e p ai do r i n cu rredwh i l e wo rk in g atth e d i s t an t wo rk s i t es . Wh i l e wo rk i ng at th e v ari o u s wo rk s i t es p et i t i o ner wo re o v eral ls an d p ro t ect i v e g las ses . Duri n g th e ap p l i cat io n o f th e fl am e-ret ard an ti n su l at i n g
m at eri al s t o th e b u i ld i n g s , p et i t i o n er’ s cl o th es g o tco v ered i na “ g y p s u m an da
cem en ti t i o u s p ro du ct ” t h atreq ui redh im t o u s e a co m

m erci al l au n dro m att o cl ean th em . A p ai di nco m e t ax return p rep arer p rep aredp et it i o n ers ’ 2 0 1 2 an d 2 0 1 3 Fed eral i nco m e t ax return s. OnSch edu l es A at t ach edt o th e ret u rn s p et i ti o n ers cl ai m edd edu ct i on s fo r u n rei m b u rs edem

p lo y ee b u s i n es s ex p en s es t o t al i n g- 5
-

$ 1 9 ,2 1 8 fo r 2 0 1 2 an d$ 2 0 ,5 9 4 fo r 2 01 3 . Th e d et ai l s o f t h e u n rei m b u rs ed
em pl o y ee b u s i n es s ex p en s e d edu ct i o n s are s h o wno nFo rm s 2 1 0 6 al s o i n cl u d ed wi th p et i t i o n ers ’ 2 0 1 2 an d2 0 1 3 retu rn s , as fo l l o ws : 4 Unrei m

b urs edem

p l o y ee b u si n es s ex p en s es 2 0 1 2 2 0 1 3 Veh i cl e $ 1 1 ,2 4 3 $ 1 2 ,0 0 6 Trav el wh il e awayfro m h o m e 3 ,6 4 0 3 ,9 4 0 Bu s in es s 1 8 8 8 9 8 7 M eal s an den tert ai n m en t 2 2 ,0 2 0 2 , 2 4 8

1 Pet i t i on ers ’ retu rn s d o n o ti d en t i fy s p eci fi c ex p en s es i n cl u d edi nth e d educt i o n fo r “ Bu s i n es s ex pen s es ”.

2 Befo re t h e ap p l i cat i o n o f t h e 5 0% l i m i t at i o np res cri b edi ns ec. 2 7 4(n )(1 ). Pet i t io n ers al s o cl ai m edd edu ct i o n s o f $ 55 5 an d$ 50 5 fo r 2 0 1 2 an d2 0 1 3 , res p ect i vel y , at tri b u t ab l e t o th e co s to f cl ean i n g th e o veral l s th atp et i ti o n er wo re fo r wo rk (l au n dry ex p en s es ). In ad d i t i o n t o o th er ad

j u s t m en t s n o wco n ced ed , i nth e n o t ice res po n d en t d i s al lo wedth e d educt i o n s d es cri b edi nth e p reced i n g p arag rap h an di m po s eda
s ect i on 6 6 6 2 (a) accu racy -rel at edp en al ty fo r each y ear.

4 Fo r each y ear i n i s s u e p et i t i o n ers cl ai m edd edu ct i o n s fo r u nrei m b u rs ed em pl o y ee b u s i n es s ex p en s es at tri b u t ab l e t o M rs . Cam pb el l th atare n o trefl ect edi n th i s t ab l e as th ey

are n oti n i s s u e. As b es tas we can t el l fro m the reco rd , fo r each y ear i n i s s u e t h ere i s a d i s crep an cy b et ween th e am o u n to f t h e u n rei m b u rs ed em pl o y ee b u s i n es s ex p en s e d edu ct i o ncl ai m edo n the Sch edu l e A an dth e s u m o f th e u n rei m

b u rs edem

p l o y ee b u s i n es s ex p en s es rep o rt edo n t h e Fo rm 2 1 0 6 at tri b u t ab l e t o p et i t i o n er an dth e Fo rm 2 10 6 at tri b u t ab le t o M rs . Cam p b el l. Th at d i s crep an cy

h as n o tb een ex p l ai n ed
.- 6
- Di s cu ss i o n As we h av e o b s erv edi n co u n tl es s o p i n i o n s, d edu ct i on s are a m at t er o f l eg i s lat i v e g race, an dthe t ax p ay er b ears th e b urd en o f p ro v i n g en t i t l em en tt o an y cl ai m edd edu ct i on . 5 Ru l e 1 4 2 (a); INDOPCO, In c. v . Co m m i ss i o ner, 5 03 U.S. 7 9 , 8 4 (1 99 2 ); New Co l o n i al Ice Co . v . Hel v eri n g, 2 9 2 U.S. 4 3 5 , 4 40 (1 9 3 4 ). Tax p ay ers m

u sts ubs t an ti at e d edu ct i o ns cl ai m edb y k eep in g an d p ro du ci n g ad equat e reco rd s th aten ab l e th e Co m m i s s i o n er t o d et erm i n e t h e t ax p ay er’ s co rrect t ax l i ab i l i ty . Sec. 6 0 01 ; Hrad es ky v . Co m m i s si on er, 6 5 T.C. 8 7, 8 9 (1 9 7 5 ), aff’ d p er cu ri am , 5 4 0 F.2 d8 2 1 (5 th Ci r. 1 9 7 6 ); M en eg u zzo v . Co m m i s s i o n er, 4 3 T.C. 8 2 4 , 8 3 1 -8 3 2 (1 9 65 ). A t ax pay er cl ai m i n g a d educt i o no na Fed eral i n co m e t ax retu rn m u s td em o n st rat e t hatthe d edu ct i o ni s al l o wab l e p u rs uan tt o s o m e s t atu t o ry p ro v is i o n an dm

u s t fu rt h er s ub s t an t i at e t h atth e ex pen s e t o wh i ch th e d edu ct i o n rel at es h as b een p ai d o r i ncu rred . See s ec. 6 0 0 1 ; Hrad es ky v . Co m m i s s i o n er, 6 5 T.C. at8 9 -9 0 ; s ec. 1 .6 0 0 1 -1 (a), In co m e Tax Reg s . Tax p ay ers m ay

d edu cto rd in ary

an dn eces s ary

ex p en s es p ai d i nco n n ect i o n wi th o perat i ng a t rad e o r b u s i n es s . Sec. 1 6 2 (a); Bo y dv . Co m m i s s i o n er, 1 2 2 T.C. 3 0 5 , 3 1 3 (2 0 0 4). Gen eral l y , th e p erfo rm an ce o f s erv ices as an em p lo y ee

5 Pet i t i on ers d o n o t cl ai m

an dth e reco rdd o es n o t s ho w th at th e p ro v i s i o n s o f s ec. 7 4 91 (a) are ap p l icab l e, an d we p ro ceed as tho u g h th ey are n o t .- 7
-

co n st i tu t es a t rad e o r b us i nes s . Pri m u th v . Co m

m is s i o n er, 5 4 T.C. 3 7 4 , 3 7 7 (1 9 7 0). Sect io n 2 7 4 (d ) i m

p o s es s tri cts ub st an t i at i o nreq ui rem en t s fo r t rav el , en t ert ai n m en t , g i ft , an dl i s t edp ro p ert y (i n cl u d i n g p as s en g er au t o m o bi l es )
ex p en s es . San fo rd v . Co m m i s s i o n er, 5 0 T.C. 8 2 3 , 8 2 7 (1 96 8 ), aff’ d p er cu ri am , 4 1 2 F.2 d2 0 1 (2 d Ci r. 1 9 69 ); s ec. 1 .2 7 4 -5 T (a), Tem p o raryIn co m e Tax Reg s ., 5 0 Fed
. Reg . 4 6 0 1 4 (No v . 6 , 1 9 85 ). Un d er s ect io n 2 74 (d ), th e t ax p ay er g en eral l y
m u sts ub st an t i at e ei th er b y

ad equ at e reco rd s o r b y

s u ffi ci en tev i d en ce
co rro b o rat in g th e t ax p ay er’ s o wns t at em en t : (1 ) th e am o u n to f t h e ex p en s e; (2 ) t h e t i m e an dp l ace t h e ex p en s e was i n cu rred ; (3 ) t h e b u s i n es s p u rp o s e o f t he ex p en se;
an d (4 ) i n th e cas e o f an en t ert ai n m en t o r g iftex p en s e, t h e b u si n es s rel at i o n s h i p t o th e t ax p ay er o f each ex p en se i n cu rred . Fo r l is tedp ro p erty ex p en s es , th e t ax p ay er
m u stes t ab l i s h th e am o u n t o f b u s i n es s u s e an d th e am o u n t o f t o tal u s e fo r t h e p ro p erty . See s ec. 1 .2 7 4 -5 T(b )(6 )(i )(B), Tem p o raryIn co m e Tax Reg s ., 5 0 Fed
. Reg
. 4 6 0 1 6 (No v. 6 , 1 98 5 ). Sub s t an t i at i o nb y ad equ at e reco rd s req u i res th e t ax p ay er t o m ai nt ai n an acco u n tb o o k , a d i ary , a l o g , a s tat em en to f ex p en s e, t ri p
s h eet s , o r a s i m i l ar reco rd p rep aredco n t em p o ran eo u s ly

wi th th e ex p en di tu re an d d o cu m en t ary

ev i d en ce (e.g ., recei pt s o r b i ll s ) o f cert ai n ex p en di tu res . Sec. 1 .2 74
- 5 (c)(2 )(i i i ), In co m e Tax Reg s .; s ec. 1 .2 7 4-5 T(c)(2 ), Tem p o raryIn co m e Tax Reg s .,- 8
-

5 0 Fed . Reg . 4 6 01 7 (No v . 6 , 1 9 8 5 ). Sub s t an t i at i o n b y o th er s u ffi ci en tev i d en ce req u i res th e p ro du ct i o n o f co rro b o rat i v e ev i den ce i ns up p orto f t h e t ax pay er’ s
s t at em en ts p eci fi cal l y

d et ai l i n g t h e req u i red el em en t s . Sec. 1 .2 7 4 -5 T(c)(3 ), Tem p o raryIn co m e Tax Reg s ., 5 0 Fed . Reg . 4 6 02 0 (No v . 6 , 1 9 8 5 ). I. Un rei m

b u rs edEm

p lo y ee Bu s i n es s Ex pen s es A. Veh i cl e Ex p en ses Pet i t i o ners cl ai m ed v eh icl e ex p en s e d edu ct i o n s o f $ 1 1 ,2 43 an d$ 1 2,0 0 6 fo r 2 0 1 2 an d2 0 1 3 , res p ect i v el y . Pet i t i o n er co m p u t edth o s e d educt i o n s b y ap p l y i n g th e ap p l i cab l e s tan d ardm il eag e rat e 6 fo r each y ear i ni s s u e t o th e b u s i n es s m i l es h e cl ai m s t o h av e d ri v en : (1 ) b et ween h i s res i d en ce an dt em p o rary wo rk s i t es i nth e Ch i cag o m et ro p o l i tan area, s o m et i m es s to p p i n g al o n g th e way ath i s em p l o y er’ s wareh o us e t o p i ck

up v ari o u s i tem s , an d (2 ) b et ween h i s res i d en ce an d t h e d i s t an t
wo rk s i tes , i n cl u d i n g m i l eag e d ri v en wh i l e at th e d i s t an two rk s i tes . In g en eral , an di f p ro p erl y s ub s t an t i at ed , tran s p o rt at i o nex p en s es b etween p l aces o f b us i n es s are d edu ct ib l e, b u t as a g en eral ru l e, a t ax p ay er’ s co s t s o f
co m m u t i ng b et ween h i s o r h er res i d en ce an dp l ace o f b us i n es s o r em pl o ym en tare

6 Th e Co m

m i ss i o n er g en eral l y up d at es th e o p ti o n al s t an d ardm il eag e rat es an n ual l y . See s ec. 1 .2 74 -5 (j)(2 ), In co m e Tax Reg s . Th e s t an d ardm i l eag e rat e o f 5 5 .5 cen t s p er m i le fo r 2 0 1 2 i s s etfo rth i nNo t i ce 2 0 1 2-1 , s ec. 2 , 2 0 1 2 -2 I.R.B. 2 6 0 , 2 6 0 . Th e s t an d ard m i l eag e rat e o f 5 6.5 cen t s p er m i l e fo r 2 0 1 3 i s s etfo rt h i n No t ice 2 01 2 -7 2, s ec. 2 , 2 01 2 -5 0 I.R.B. 6 7 3 , 6 7 3.- 9
-

n o n d edu ct i b l e p ers o nal ex p en s es . Secs . 1 6 2 (a), 2 6 2 (a); St ei n h o rtv . Co m m i s s i o n er, 3 3 5 F.2 d4 9 6 , 5 0 3 -5 0 4 (5 th Ci r. 1 96 4 ), aff’ g an d rem an d i ng T.C. M em o. 1 9 6 2 -2 3 3 ; Heu er v . Co m m i s s i o n er, 3 2 T.C. 9 4 7 , 9 5 1 -9 52 (1 9 5 9 ), aff’ dp er
cu ri am , 2 8 3 F.2 d8 6 5 (5 th Ci r. 1 9 60 ); s ee al s o Fau s n er v . Co m m is s io n er, 4 1 3 U.S. 8 3 8 , 8 3 9 (1 9 7 3); Co m

m i ss io n er v . Fl o w ers , 3 2 6 U.S. 4 6 5, 4 6 9 -4 7 0 (1 94 6 ); San ders v. Co m

m is s i o n er, 4 3 9 F.2 d2 9 6 , 2 9 7 (9 th Ci r. 1 9 7 1 ), aff’ g 5 2 T.C. 9 6 4 (1 9 6 9); Cu rp h ey

v . Co m m is s io n er, 7 3 T.C. 7 6 6 , 7 7 7 (1 9 8 0); Ro y v . Co m m i s s i o n er, T.C. M em o . 1 9 9 7 -5 6 2 , aff’ dwi th ou tp ub l i s h edo p i n i o n , 1 8 2 F.3 d 9 2 7 (9 th Ci r. 1 9 99 ); s ecs . 1
. 1 6 2 -2 (e), 1 .2 6 2 -1 (b )(5 ), In co m e Tax Reg s . Seem i n g l y
n o n d edu ct i b l e co m

m u t i n g ex p en s es m ay

b e d edu ct ed i f th e ex p en s e i s fo r t rav el : (1 ) b et ween a t ax p ay er’ s res i den ce an da t em p o rary d i s t an two rk si t e; (2 ) fro m the t ax p ay er’ s h o m e o ffi ce t o a p l ace o f b u s in es s ; an d(3 ) req u i ri n g t h e t ax p ay er t o p ay
o r i n cu r ad di ti o n al co s t s t o tran s p o rtt o o l s an dm at eri al s fro m th e t ax p ay er’ s
res i den ce t o a p lace o f b u s i nes s. See Rev . Ru l
. 9 9 -7 , 1 9 99 -1 C.B. 3 6 1 ; Rev . Ru l
. 7 5 -3 80 , 1 9 7 5 -2 C.B. 5 9
. Acco rd i ng t o res p o nd en t , p et i t i o n er i s n o t en t i tl edt o t h e d edu ct i o n s fo r
v eh icl e ex p en s es b ecau s e h e h as fai l edp ro p erl y t o s ub s t an t iat e t h e am o un t s o f t h e
u n d erl y i n g ex p en ses (s ub s t an t i at i o narg u m en t ). To th e ex t en tth e d edu ct i o n s
m i g h th av e b een ad equ at el y s ub s t an t i at ed , res p o n d en tfu rt h er t ak es th e p o s i t i o n- 1 0 -

th atat leas t s o m e o f t h e v eh i cl e ex p en s es m ay n o t b e d edu ct edb ecau s e t h e
ex p en s es are at tri b u t ab l e t o the co s t o f co m m u ti n g (co m

m u ti n g arg u m en t ). Ou r at t en t i o n i s fi rs td irect edt o res p o nd en t’ s s ub st an t i at i o narg u m en t . As earl ier ex p l ai n ed , d educt i o n s at tri b u tab l e t o a t ax p ay er’ s u s e o f t h e t ax p ay er’ s p as s en g er au t o m o b il e 7 fo r b u s i n es s p u rp o ses are s ubjectt o th e s tri cts ub s t an t i at i o n
ru l es o f s ect i on 2 74 , an das p rev i o u s l y n o ted , p et i ti o n er d i dn o tm ai n t ai n an y
co n tem p o ran eo u s l o g s o r reco rd s co n t em p l at edb y th ats t atu t e o r i t s co rres po n d i n g reg u l at i o n . Nev ert hel es s, we fi n dth atp et i t io n er’ s t es t i m o ny , co up l edwi th t h e
reco rd s o f M i dwes t , s u ffi ci en t l y s at i s fi es th e s ub s tan t iat i on req u i rem en t s o f
s ect i on 2 7 4 wi th res p ect t o th e m i l eag e p et i t i on er cl ai m s t o h av e dri ven fo r wo rk
. See s ec. 1 .2 7 4 -5 T(c)(3 ), Tem p o raryIn co m e Tax Reg s ., s up ra. Itfo l l ows th at p et i t i o n ers are en t i t l ed t o d edu ctv eh i cl e ex p en s es p et i t io n er i n cu rredfo r o n ce-aweektrav el b et ween M i dw es t ’ s wareh o u s e an d a wo rk s i t e, an dfo r ex p en s es p et i t i o n er i n cu rredwi th res p ectt o trav el t o an datth e d i s t an t wo rk s i t es . Th e d educt i o n s are t o b e cal cu l at edi n th e p art ies ’ Ru l e 1 5 5 co m p u t at i on s , t ak i ng i n t o
acco u n t th e s t an dardm i l eag e rat es p rev i o u s l y referen cedan dp et i t io n ers ’ cred i b l e p res en t at i o n reg ard i n g th e nu m b er o f m i l es dri v en fo r s u ch p u rp o s es .

7 Pet i t i on er’ s p i ckup tru ckfi t s wi th i nth e d efi n i t io no f a “ p as s en g er au t o m ob i l e” fo r p u rp o s es o f s ec. 2 7 2 . See s ec. 2 8 0 F(d )(5 ).- 1 1 -

As far as s ub s t an t i at i on g o es , th e ab o v e reas o n i n g ap p l i es t o al l o f t h e
m i l eag e i n cl u d edi n th e v eh i cl e ex p en s e d edu ct i on s h ere i nd is p u te. Ad equat el y
s ub s t an t i at i n g th e m i l eag e d ri v en fo r p u rp o s es o f s ect i o n 2 7 4 , h o wev er, i s o n l y h al f o f t he s t o ry . Res p o n d en t ’ s co m m u t i n g arg u m en t m

u s tal s o b e co n s i d eredfo r th e m i l eag e d ri v en b et w een p et i t i o n er’ s res i d en ce an dth e v ari o u s Ch i cag o
m et ro p o l i t an wo rk s i t es . As i n d i cat ed , acco rd in g t o res p o n d en t , th e ex p en s es p ai d
o r i n cu rredt o dri v e b et ween th o s e p o in t s are n o n d edu ct i b l e co m m ut i n g ex p en s es . See s ec. 2 6 2 (a). Pet i ti o n ers d i s ag ree, an dwi th ou ts p eci fi c referen ce t o t h e ab o v eci t ed rev en u e ru l in gs , arg u e t h atfo r o n e o r m o re o f t h e reas o n s co n t em p l at edi n th e rev en u e ru l i n g s trav el b et ween p et i t i on er’ s res i d en ce an d th e Ch i cag o
m et ro p o l i t an area wo rk s it es d o es n o tco n st i tu t e co m m u t in g . W e wi l l t ak e each o f th o s e reas o n s i n turn .

1
. Tem p o raryDi st an tW o rk s i t es A t ax p ay er i s en t i t l edt o d edu cttran s p ort at i o nex p en s es b et ween the t ax p ay er’ s res i d en ce an dth e t ax p ay er’ s p l ace o f b u s i n es s o n ly i f t he p l ace o f b u s i n es s co n s t itut es a t em p o raryd i s t an t wo rk s i t e. See Sch u rer v . Co m m i s s i o n er, 3 T.C. 5 4 4 , 5 4 7 (1 9 4 4 ). Rev . Ru l . 9 9 -7 , 1 9 9 9 -1 C.B. 3 6 1 , 3 6 1 , s t at es : “ At ax p ay er
* * * m ay d edu ctd ai ly

tran s p o rt at i o n ex p en s es i n cu rred i ng o i n g b et ween th e t ax p ay er’ s res i d en ce an da t em p o rarywo rkl o cat i o n o u t s i d e t h e m et ro p ol i tan area- 1 2 -

wh ere t h e t ax p ay er l i v es an d n o rm al l y wo rk s .” Th e wo rk s i t es i n th e Ch i cag o
m et ro p o l i t an area, o r t h e “ Ch i cag o l an d” area, as d es cri b ed b y p et i t i on er’ s
em pl o y er, are n o t “ o ut si d e th e m et ro p o l i t an area wh ere * * * [p et i ti o n er] l iv es an d
n o rm al l y wo rk s .” Th atb ei ng s o , p et it i o n ers can n o tav oi d res p on d en t ’ s co m m u t i n g arg u m en to n th atb as i s .

2
. Ho m e Offi ce Pet i t i o ners arg ue t h atth ey are en t i t l edt o d eductth e m i l eag e d ri v en b et ween th ei r res i d en ce an dal l o f p et i t i o n er’ s wo rk s i t es , i n cl u d i ng th e Ch i cag o
m et ro p o l i t an area wo rk s it es , b ecau s e h e m ai n t ai n eda h om e o ffi ce i n th e g arag e o f h i s res id en ce. If o n l y

b y i m p l i cat i on , th ey

rel y o n Rev
. Ru l . 9 9 -7 , 1 9 9 9 -1 C.B. at 3 6 2 , wh i ch s t at es i n p ert i n en tp art : “ If an o ffi ce i nthe t ax p ay er’ s res i d en ce
s at i s fi es th e p ri n ci p al p l ace o f b u s i n es s req ui rem en t s o f * * * [s ect i o n ] 2 8 0 A(c)(1 )(A), t h enth e res id en ce i s co n si d ereda b u s in es s l o cat i o n * * * [an d ] th e d ai l y tran s p o rt at i o n ex pen s es i n cu rred i n g o i n g b et ween th e res i d en ce an d o th er
wo rkl o cat i o n s i n t h e s am e t rad e o r b u s i n es s are o rd i n ary an dn eces s ary

b u s i n es s
ex p en s es (d edu ct ib l e u n d er * * * [s ect i on ] 1 6 2 (a)).” See, e.g
. , Stro h m ai er v . Co m m i s s i o n er, 1 1 3 T.C. 1 0 6 , 1 1 3 -1 1 4 (1 9 9 9). A t ax p ay er g en eral l y

i s n o ten t it l ed t o d edu ct an y ex pen s es rel at edt o a dwel l i n g u n itu s edas a res i d en ce du ri n g t h e t ax ab l e y ear. Sec. 2 8 0A(a). Ex p en s es- 1 3 -

at tri b u t ab l e t o a h o m e o ffi ce are ex cep tedfro m thi s g en eral ru l e, h o wev er, i f t h e
ex p en s es are al l ocab l e t o a p o rt i o no f t h e d wel li n g u n i twh i ch i s ex cl u s i v el y u s ed
o n a reg u l ar b as i s as the p ri n ci p al p l ace o f b u s i nes s fo r t h e t ax p ay er’ s trad e o r b u s i n es s . Sec. 2 8 0 A(c)(1 ); Lo fs tro m v . Co m m i s si o n er, 1 2 5 T.C. 2 7 1 , 2 7 7 (2 0 0 5 ). If t h e t ax p ay er i s an em

p l o y ee, t h e ex cep ti o n u n d er s ect i o n2 8 0 A (c)(1 ) wi l l ap p ly o n ly i f th e ex cl u s i v e u s e o f t h e o ffi ce s p ace i s fo r t h e co n v en i en ce o f t h e t ax p ay er’ s em

pl o y er. Sect i on 2 8 0A(c)(1 ) fu rt h er p ro v i des th ati n t h i s co nt ex tth e t erm “pri n ci p al p l ace o f b us i n es s ” i n cl ud es a p l ace o f b u s i nes s wh ich i s u s edb y th e t ax p ay er fo r t h e ad m i ni st rat i v e o r m an ag em en t act i v i t ies o f an y trad e o r b u s i n es s o f t h e t ax p ay er i f th ere i s n o o th er fi x edl o cat io no f th e t rad e o r b u s i n es s wh ere t h e t ax p ay er co n du ct s s ub s t an t i al ad m in i s trat iv e o r m an ag em en tact i v i t i es
o f t h e t rad e o r b u si n es s . See Ham ach er v . Co m m i s s i o n er, 9 4 T.C. 3 4 8 , 3 53 -3 5 4 (1 9 9 0). Pet i t i o ners d o n otcl ai m , an dth ey h av e n o tes t ab li s h ed , th atdu ri n g th e y ears i n i ss u e t h ei r g arag e was u s edex cl u s iv el y o na reg u lar b as i s as th e p ri n ci p al p l ace
o f b u si n es s fo r p et i t i o n er o r t h atth e g arag e/ ho m e o ffi ce was m ai n t ai n edfo r t h e
co n ven i en ce o f M i dw es t . Ev en i f p et i t i o n er u sedan area i nh i s g arag e fo r b u s i n es s p u rp os es , p et i t i o n ers wo u l dn o tb e en t i t l edt o a h o m e o ffi ce ex p en se d edu ct i o n at tri b u t ab l e t o th atarea (i nd eed , th ey d i dn o tcl ai m

o n e fo r ei th er y ear), an dth ey- 1 4 -

can n otav o i dres p o nd en t ’ s co m m u t i n g arg u m en to n t h atb as i s ei th er. See, e.g ., W al k er v . Co m

m i s si o n er, 1 0 1 T.C. 5 3 7 , 5 45 -5 4 6 (1 9 9 3 ) (ci t i n g an d d i s cu s s i n g Cu rp h ey v . Co m m i s s i o n er, 7 3 T.C. 7 6 6 (1 9 8 0 )). 3
. Tran s p o rt in g To o l s an dM at eri al s Rev . Ru l . 7 5 -3 8 0 , 1 9 7 5-2 C.B. 5 9 , al l o ws t ax pay ers t o d edu ctth e ad d i t i o n al
co s t s thata t ax p ay er i n cu rs t o t ran s p o rtjo b -rel at edt o o l s an dm at eri al s b et ween a t ax p ay er’ s res i d en ce an dth e t ax p ay er’ s p l ace o f em p lo ym en t . Pet i t io n ers d i dn o t p ro v id e an y

ev i d en ce t h atwo u l dal l o w u s t o d et erm i n e wh atex ces s co m m u t i n g
ex p en s es , i f an y , m i g h tb e at tri b u t ab l e t o tran s p o rt i n g p et i t i on er’ s t o o ls t o an d fro m h i s v ari o us wo rk si t es . Acco rd in g l y , p et i t i o n ers are n o ten t i t l ed t o a d educt i o n fo r an y s uch ex p en s es . B. Dedu ct i o ns fo r M eal s an dLo d g i n g Pet i t i o ners cl ai m ed d educt i o n s o f $ 5 , 6 60 an d$ 6 ,1 8 8 fo r 2 01 2 an d 2 01 3 , res p ect i vel y , fo r m eal s an d l o d g i n g ex p en s es . Acco rd in g t o p et i ti o n ers , thes e
ex p en s es rel at e t o am o un t s p ai do r i n cu rredwh il e p et it i o n er wo rk edatth e d i s t an t
wo rk s i tes . Al th ou g h M i dwes t ’ s reco rd s s h o w th e d at es th atp et i ti o n er wo rk edatth e d i s t an two rk s i tes , th e reco rd s d o n o ts h o w th e am o un t s h e m i gh th av e s pen tfo r
m eal s an dl o d g i n g wh i l e atthe d i s t an two rk s i t es . As n o t ed , p et i ti o n er d i dn o t- 1 5 -

ret ai n an y recei p t s t h ato th erwi s e s ub s t an t i at e t h o s e ex pen s es , an d as n o t ed , th e d educt i o n o f ex pen s es fo r m eal s an dl o d g i n g i s s ub jectt o s tri cts ub s t an t i at i o n req u i rem en t s . Becau s e p et i t i o ners h av e fai l edt o s at i s fy th o s e req u i rem en t s , th ey
are n o ten t it l edt o the d edu ct i o n s fo r m eal s an dl o dg i n g s h own o nth e Fo rm s 2 1 0 6
. 8 C. Un sp eci fi edBu s i nes s Ex p en s es Fo r each y ear p et it i on ers cl ai m edd edu ct io n s fo r ex p en s es d es cri b edo nth ei r retu rn s as “ u n s p eci fi edb u s in es s ex p en s es .” 9 Pet i t i o n ers o ffered n o ex pl an at i o n fo r th es e ex p en s es . Anu n s peci fi edb u s i n es s ex p en s e i s n o td edu ct i b l e. Acco rd i n g l y , res p o n d en t’ s d i s al l o wan ce o f p et i t i on ers ’ cl ai m edd edu ct io n s fo r un s p eci fi ed b u s i n es s ex p en s es i s s u s t ai n ed
.

8 W e are rel uct an t o n o ur o wnt o ap p ly th e b en efi ts o f Rev . Pro c. 2 0 11 -4 7 , s ec. 4 .0 3 , 2 0 1 1 -4 2 I.R.B. 5 20 , 5 2 2 , wh i ch rel ax es , t o s o m e ex ten t , th e s tri ct s ub s t an t i at i o n req u irem en t s wi th res p ectt o ex p en s es fo r m eal s wh i l e t rav el i n g away fro m

h o m e. Th i s i s b ecau s e t he Fo rm s 2 10 6 o n wh i ch th e ex p en s es are l i st edd o n o tt ak e i n t o acco u n tan y p er d iem am o u n t s thatp et i t i o n er m i g hth av e recei v edfro m

M i dwes t , an dwe can n o t t el l fro m wh ath as b een s ub m i t tedwh et h er th e p er d i em

am o un t s are i n cl u d ed i nth e wag e i n co m e p et i ti o n er rep o rt edo n p et i t i o n ers ’ retu rn fo r each y ear.

9 It i s u ncl ear wh et h er p et i t i o n ers h av e co n ced edth es e d edu ct i o ns . W e p ro ceed as th o u g h th ey

h av e n o t .- 1 6 -

D. Laun dry

Ex p en ses Pet i t i o ners cl ai m ed d educt i o n s o f $ 5 55 an d$ 5 05 fo r 2 0 1 2 an d2 0 1 3 , res p ect i vel y , fo r t h e co s ts o f cl ean in g p et it i on er’ s wo rkcl o th es . 1 0 Acco rd in g t o p et i t i o n er, t h es e ex p en s es rel at e t o the co s tt o cl ean h i s wo rkcl o th es ata
co m m erci al l au n dro m at . If a t ax p ay er i s en t i t l edt o a t rad e o r b u s i n es s ex p en s e d edu ct io n fo r an art i cl e o f cl o th i n g , th en th e t ax p ay er i s en t i tl edt o d eductth e ex p en s es p ai do r i n cu rredt o l au n d er t hati t em . Ex p en s es fo r wo rkcl o th i n g are d educt i bl e i f t h e cl o th i n g o r u n i fo rm

i s o f a t y p e s p eci fi cal l y

req u i redas a co nd i t i o n o f
em pl o y m en t , th e un i fo rm

i s n o tad ap t ab l e t o g en eral u se as o rd i n ary cl o th i n g , an d th e u n ifo rm s are n o t wo rn as o rd i n ary cl o th i n g . Yeo m an s v . Co m m i s si o n er, 3 0 T.C. 7 5 7 , 7 6 7 -7 69 (1 9 5 8); W as i k v . Co m m i s s i o n er, T.C. M em o . 2 0 0 7 -1 4 8 ; Beck ey v . Co m m i s s i on er, T.C. M em o . 1 9 94 -5 1 4 . Th e o v eral l s p et i t i o ner wo re fo r
wo rk , as h e d es cri b edth em , are ad ap t ab l e t o g en eral u s e as o rd in ary cl o th i ng . Th atb ei n g s o , th e co s t s o f t h e o v eral ls i s n o t d edu ct i b l e as a t rad e o r b u si nes s

1 0 Pet i t i o ner al s o cl ai m edu n rei m bu rs edem

p l o y ee b u s i nes s ex p en s e d educt i o n s o f $ 7 5 3 an d $ 6 8 4 fo r 2 0 1 2 an d 2 0 1 3 , res p ect i v el y , fo r th e co s t s o f p u rch as in g “ W o rkUn ifo rm s an dGear”. Attri al p et i t i o n ers co n ced eden t it l em en t t o tho s e d edu ct i on s . No net h el es s , res p o n d en t ’ s qu es t i on s du ri n g the re-cro s s ex am i n at i o n o f p et i t i o n er s u g g es tth atres p o n d en tag rees th atp et i t i o ners are en t i t l edt o atl eas tp o rt io n s o f t h o s e d edu ct i on s . If s o , th at ag reem en tm ay b e refl ect edi n th e p art i es ’ Ru le 1 5 5 co m p u t at i on s .- 1 7 -

ex p en s e, an di t fo l l o ws th at th e ex p en s es i ncu rredt o l au n d er t he o v eral l s are l i kewi s e n o td edu ct ib l e. See Yeo m an s v . Co m m is s i o n er, 3 0 T.C. at7 6 7 -7 6 9
. Co n s equ en t l y , p et i t i o n ers are n o ten t i t ledt o d edu ct i o n s fo r t h e l au n dry ex p en s es . II. Sect io n 6 6 6 2 (a) Accu racy -Rel at edPen al t i es Las t ly , we co n s i d er wh et h er p et i t i o ners are l i ab l e fo r a s ect i o n6 6 6 2 (a)
accu racy -rel at edp en al ty

fo r ei th er y ear i ni s s u e. Th at s ect i o ni m p o s es an
accu racy -rel at edp en al ty

equ al t o 2 0 % o f t h e u n d erp aym en to f t ax th ati s at tri b u t ab l e t o n eg l i g en ce o r o th er s p eci fi edg ro u n d s . Neg l i g en ce as u s ed i n
s ect i on 6 6 6 2 (b )(1 ) i s d efi n edas an y fai l u re t o m ak e a reas o n ab l e at tem p t t o
co m p l y wi th th e Co d e an d an y fai l u re t o k eep ad equat e b o o k s an d reco rd s o r t o
s ub s t an t i at e i t em s p ro p erl y . Sec. 6 6 6 2(c); s ec. 1 .6 6 6 2-3 (b )(1 ), In co m e Tax Reg s . Neg li g en ce h as al s o been d efi n edas th e fai l u re t o ex erci s e du e care o r th e fai l u re t o d o wh at a reas o n ab l e p ers on wo u l dd o u n d er t h e ci rcu m s tan ces . See Al l en v . Co m m i s s i o n er, 9 2 T.C. 1 , 1 2 (1 9 8 9 ), aff’ d , 9 2 5 F.2 d3 4 8 , 3 5 3 (9 th Ci r. 1 99 1 ); Neel y v . Co m m is s i o n er, 8 5 T.C. 9 34 , 9 4 7 (1 9 8 5). Res p o n d en tb ears th e b u rd en o f p ro duct i o n wi th res pect t o th e i m p o s i t i o no f a s ect i o n6 6 62 (a) accu racy -rel at ed p en al ty . See s ec. 7 4 9 1(c). Sect io n 6 7 5 1 (b )(1 ) p ro v i d es th at , s ub j ectt o cert ai nex cep t io n s i ns ect i o n 6 7 5 1 (b )(2 ), n o p en al ty

s h al l b e as s es s ed u n les s the i ni t i al d et erm i n at i o n o f t h e- 1 8 -

as s es s m en ti s p ers o n al l y

ap p ro v edi nwri t i n g b y

th e i m m ed i at e s uperv i s o r o f t h e i n d i v i du al m ak i n g th e d et erm i n at i o no r s u ch h i g h er l ev el o ffi ci al as the Co m m i s s i o n er m ay

d es i gn at e. Wri t t en ap p ro v al o f t h e i ni t i al p en al ty d et erm i n at i o n u n d er s ect i on 6 7 5 1 (b )(1 ) m u s tb e o b t ai n edn o l at er t h an th e d at e t h e
n o t i ce o f d efi ci en cy

i s i ss uedo r t h e d at e t h e Co m m is s i o n er fi l es an an s wer o r
am en d edan s w er as s ert i n g th e p en al ty . Ch ai v . Co m m i s si on er, 8 5 1 F.3 d 1 90 , 2 2 1 (2 dCi r. 2 0 1 7), aff’ g i n p art , rev ’ g i np artT.C. M em o . 2 0 1 5-4 2 ; s ee al s o Graev v . Co m m i s s i o n er, 1 4 9 T.C. (Dec. 2 0 , 2 0 1 7 ), s up p l em en t i n g an do v erru l in g i np art 1 4 7 T.C. 4 6 0 (2 01 6 ). Co m p li an ce wi th s ect i o n6 7 5 1 (b )(1 ) i s p arto f t he Co m m i s s i o n er’ s b u rd en o f p ro du ct i o n i nan y d efi ci en cy

cas e i n wh i ch a p en al ty
s ub jectt o s ect i o n 6 7 51 (b )(1 ) i s as s ert ed . Ch ai v . Co m m i s s io n er, 8 5 1 F.3 dat2 2 1
. Th e s ect i on 6 6 6 2(a) accu racy -rel at edp en al ti es d et erm i n edi nthe n o t i ce were p ro perl y

ap p ro v edas req ui redb y

s ect i o n6 7 5 1 (b )(1 ). Th e reco rdi n cl u d es a Ci v il Pen al ty

Ap p ro v al Fo rm , ap p ro v i n g i m p os i t i o no f accu racy -rel at edp en al t ies ag ai n s tp et i t i o n ers fo r 2 0 1 2 an d2 0 1 3 an d ex ecu t ed b y th e IRS t ax ex am i ner’ s i m m ed i at e s up erv i s o r b efo re t h e d at e t h e n o t ice was i s s u ed . Res p o n d en th as p ro v ens u ffi ci en tfact s t o s at i s fy th e b u rd en o f p ro du ct i o nas t o t h ati s s u e. Pet i t i o ners h av e co n ced ed , wi th o u tex p l an at i o no r b ack gro u n d , m an y o f t h e ad ju s t m en t s m ad e i n t h e n o t ice. Fu rt h erm o re, p et i t io n er fai l ed t o m ai nt ai n- 1 9 -

ad equat e s ub s tan t i at in g reco rd s fo r m an y o f t h e ex p en s es u n d erl y i ng th e d educt i o n s cl ai m edo n p et i t i o n ers ’ 2 0 1 2 an d 2 0 1 3 return s . As a res u lt , we fi n d th atres p o n d en t m eth i s b u rd en o f p ro du ct i o n wi th res p ect t o th e n eg l i g en ce p en al ty . Th e accu racy -rel at edp en al ty d o es n o tap p l y

t o an y p art o f an u n d erp aym en t
o f t ax i f i ti s s h o wnth atth e t ax p ay er act edwi th reas o nab l e cau s e an di ng o o dfai th wi th res p ect t o th atp o rt i o n . Sec. 6 6 6 4 (c)(1 ). Th e d et erm i n at i on o f wh et h er a t ax p ay er act edi n g oo dfai th i s m ad e o na cas e-b y -cas e b as i s , t ak i n g i n t o acco u n t al l th e p ert in en t fact s an d ci rcu m s t an ces . Sec. 1
. 6 6 64 -4 (b )(1 ), In co m e Tax Reg s . Pet i t io n er b ears th e b u rd en o f p ro v i n g th at h e h adreas o n ab l e cau s e an d act edi n g o o dfai th wi th res p ectt o the u n d erp aym en t . See Hi g b ee v . Co m m i s s i on er, 1 1 6 T.C. 4 3 8 , 4 4 9 (2 0 0 1 ). Rel i an ce o n p ro fes s i o n al ad v i ce wi l l ab s o lv e t h e t ax p ay er i f “ s uch rel i an ce
was reas o n ab l e an dth e t ax pay er act edi ng o o d fai th .” Sec. 1 .6 6 6 4 -4 (b )(1 ), In co m e Tax Reg s . Un der cert ai n ci rcu m s t an ces , a t ax p ay er’ s rel i an ce up o np ro fes s i o n al ad v ice m ay

es t ab l i s h th e t ax p ay er’ s “ reas o n ab l e cau se” an d “ g o o dfai th ” wi th
res p ectt o an u n d erp aym en t o f t ax i f t h e t ax p ay er es t ab l i s h es th at : (1 ) t h e p ro fes s i on al was p ro v id edwi th co m p l et e an d accu rat e i n fo rm at i o n ; (2 ) an i n co rrect return was a res u l t o f t h e p rep arer’ s m i st ak es ; an d(3 ) th e t ax p ay er- 2 0 -

d em o n s trat es g o o d -fai th rel i an ce o na co m p et en t p ro fes s io n al . See Es tat e o f Go l dm an v . Co m

m is s i o n er, 1 1 2 T.C. 3 1 7, 3 2 4 (1 9 9 9 ), aff’ dwi th o u tp ubl i s h ed
o p i n i o n s ub n o m . Sch u t t er v . Co m m i s s i o ner, 2 4 2 F.3 d3 9 0 (1 0 th Ci r. 2 0 0 0); s ee al s o Neo nat o l o g y

As s o cs ., P.A. v . Co m

m is s i o n er, 1 1 5 T.C. 4 3 , 9 9 (2 00 0 ), aff’ d , 2 9 9 F.3 d2 2 1 (3 d Ci r. 2 0 02 ). Al th ou g h p et i t i o n ers ’ retu rn s were p rep aredb y a p ai di n co m e t ax retu rn p rep arer, p et i t io ners d i dn otp ro v i d e t h ei r retu rnp rep arer wi th an y s o u rce d o cu m en t s u n d erl y i n g th e d edu ct i o n s ei th er co n ced edo r h ere d i s al l o w ed
. Fu rt h erm o re, p et i t i o n ers ’ return p rep arer t es t ifi edth ath e d i dn o tp ro v i de an y p ro fes s i on al ad v i ce t o p et i t i o n ers ; i ns t ead , h e was s i m p l y a s cri v en er fi l l i n g i n wh at ev er nu m

b ers p et i t i o n ers p ro v i dedt o h i m . Fo r ei th er reas o n, p et i t i o n ers ’ cl ai m th atth ei r rel i an ce up o n th ei r retu rn p rep arer i n s ul at es them fro m th e i m p o s i t i o n o f t h e p en al ty i s u n av ai l i n g . Res p o n den t ’ s i m p o s i t i o no f t h e s ect i o n 6 6 6 2 (a) p en al ty

fo r each y ear i s s u s tai n ed
. To refl ectthe fo reg o i n g , Deci s i o n wi ll b e en t ered
u n der Ru l e 1 5 5
.