Stephen P. and Sharon L. Sherwood - Page 10

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          liability could be calculated.  Beard v. Commissioner, supra at             
          779.  However, noncompliance does not amount to concealment on              
          these facts.  Fourth, petitioners maintained continuous                     
          correspondence with respondent in regard to their case.  The                
          facts do not clearly show that petitioners intended to mislead              
          respondent or conceal their tax liability.  Rather, the facts               
          show that they erroneously believed that they did not owe any               
          tax.  As this Court has previously stated, these types of                   
          arguments "may have been meritless, frivolous, wrongheaded, and             
          even stupid, but we cannot hold that they amounted to fraud                 
          without something more.  Were we to do so, every [tax] protester            
          case would be automatically converted into a fraud case."                   
          Kotmair v. Commissioner, 86 T.C. 1253, 1262 (1986).  We will,               
          however, address below the consequences of pursuing such                    
          erroneous beliefs before this Court.                                        
               The sixth issue for decision is whether petitioners are                
          liable in the alternative for the section 6662(a) accuracy-                 
          related penalty for 1991.  Respondent's determinations are                  
          presumed to be correct, and petitioners bear the burden of                  
          proving that the penalties do not apply.  Rule 142(a); Welch v.             
          Helvering, 290 U.S. 111, 115 (1933); Bixby v. Commissioner, 58              
          T.C. 757, 791-792 (1972).                                                   
               Section 6662(a) imposes a 20-percent penalty on the portion            
          of the underpayment attributable to any one of various factors,             
          one of which is negligence or disregard of rules or regulations.            




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