The Tax Court has upheld IRS's determinations with respect to the car and truck expenses that a married couple was entitled to deduct, finding that their records were inconsistent and didn't support the higher amounts claimed. 

However, the Court declined to impose a fraud penalty against the couple, concluding that the errors on their returns were instead attributable to negligence, and imposed accuracy-related penalties accordingly. Flake, TC Memo 2014-76.

 

Source:

Thomson Reurters