LOUIS GREENWALD, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Mr. Husband was brought in for trial of this case. The returns in issue were filed late. There was no back-up evidence for the NOL carry-forward. Yet the result was very favorable for our client, Mr. Greenwald. Given the lack of available evidence, Mr. Husband successfully urged the Court to use a rule from Tax Court caselaw under which if some evidence is provided, the Court can make a reasonable estimate of the costs incurred in some situations to find the amount of the deductible costs related to the house. The negligence penalty was avoided by a combination of evidence from the CPA and advocacy.

Routon v. Commissioner of Internal Revenue T.C. Memo 2002-7