Patrick W. Healey and Nancy L. Marshall - Page 2

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          Addition to        Accuracy-Related                                         
          Tax                 Penalty                                                 
               Year  Deficiency      Sec. 6651(a)(1)      Sec. 6662(a),(c)1           
               1990  $1,181.38     $6,503.94           $6,607.52                      
               1991     --         3,375.00                --                         
               1992     --         2,404.00                --                         
               1 Respondent determined that petitioners were liable for               
          negligence under sec. 6662(a) and (c), but not substantial                  
          understatement under sec. 6662(d).  Thus, we do not consider                
          whether petitioners are liable under sec. 6662(d).                          

               After concessions by petitioners, we must decide the                   
          following issues:                                                           
               1.   Whether petitioners' Applications for Automatic                   
          Extension of Time to File U.S. Individual Income Tax Return                 
          (Forms 4868) for the years in issue are valid.  We hold that they           
          are not, because petitioners did not properly estimate their tax            
          liability.                                                                  
               2.   Whether petitioners are liable for additions to tax               
          under section 6651(a)(1) for failure to timely file income tax              
          returns for 1990, 1991, and 1992.  We hold that they are.                   
               3.   Whether petitioners are liable for the accuracy-related           
          penalty under section 6662(a) and (c) for negligence for 1990.              
          We hold that they are.                                                      
               4.   Whether imposition of the additions to tax for failure            
          to timely file under section 6651(a)(1) and failure to timely pay           
          under section 6651(a)(2) and the accuracy-related penalty for               
          negligence under section 6662(a) and (c) for 1990 violates the              
          Double Jeopardy Clause of the Fifth Amendment to the U.S.                   




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