- 17 -
Therefore, we are unable to allow petitioners any deductions in
this regard.
Accuracy-related Penalty
Respondent determined that petitioners were liable for an
accuracy-related penalty under section 6662(a) for negligence or
intentional disregard of rules or regulations.
Petitioners' original return was prepared by Williams &
Tucker. Petitioner did not offer any testimony with regard to the
information he provided Williams & Tucker prior to the
preparation of the original return. Inasmuch as the deficiency
herein derives from the original return, we will not consider the
amended return in this regard.9
Pursuant to section 6662(a), if any portion of an
underpayment of tax is due to negligence or intentional disregard
of rules or regulations, the taxpayer is liable for an amount
equal to 20 percent of the portion of the underpayment
attributable to such negligence or intentional disregard of the
8(...continued)
Dean v. Commissioner, 56 T.C. 895, 902 (1971); Ping v.
Commissioner, T.C. Memo. 1987-28; Goldman v. Commissioner, T.C.
Memo. 1975-138. The activities must be currently engaged in for
profit. Industrial Research Prods., Inc. v. Commissioner, 40 T.C.
578, 590 (1963).
9 We note, however, that according to petitioner's
testimony, he provided Morris with all of his tax 1989 records,
but he did not review the amended return in depth before he
signed and filed it. Had he done so, he would have observed a
Schedule C for the minister of music activity reflecting gross
income which was clearly inaccurate.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011