- 5 -
the same circumstances. Neely v. Commissioner, 85 T.C. 934, 947
(1985). The term “disregard” includes any careless, reckless, or
intentional disregard. Sec. 6662(c). The penalty does not apply
to any portion of an underpayment for which there was reasonable
cause and with respect to which the taxpayer acted in good faith.
Sec. 6664(c)(1).
Petitioner has failed to show reasonable cause and/or that
she acted in good faith. Under the circumstances of this case,
respondent’s determination of a penalty pursuant to section
6662(a) is sustained with respect to the entire underpayment.
Respondent also determined that petitioner’s 1992 income tax
return was not timely filed within the meaning of section
6651(a)(1). That section provides for a 5-percent per month (up
to a 25-percent maximum) addition to tax with respect to a late-
filed return, unless it is shown that the late filing was due to
reasonable cause and not to willful neglect. Petitioner’s 1992
Federal income tax return was due April 15, 1993. The return was
not signed until April 13, 1994, or filed until April 18, 1994.
Petitioner stated that she filed late because she did not have
the funds with which to pay the tax. In that regard,
petitioner’s 1992 return reflected no estimated payments and a
balance due of $880.52. This is in contrast to $1,014,498.29
reported as gross receipts on the Schedule C of the same return.
Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011