Capital Video Corporation - Page 14




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               Contractors, Inc. v. Commissioner, supra, we find there                
               was no negligence or disregard of rules or regulations                 
               on the part of * * * [the taxpayer].  [Id. at 183.]                    

               We believe that for the same reason, petitioners herein                
          should be relieved of the section 6662 penalties.  Petitioners’             
          tax returns for the years in dispute were filed prior to our                
          opinion in Hood v. Commissioner, supra, which was filed in the              
          year 2000, and petitioners’ tax return preparer would have had              
          access to the same authority that the taxpayers in Hood had                 
          access to.  In light of our holding in Hood v. Commissioner,                
          supra, we do not impose upon petitioners herein the accuracy-               
          related penalties relating to the disallowed legal fees paid by             
          Capital Video and relating to the additional dividend and income            
          adjustments made against Guarino.  We so hold.                              
               To reflect the foregoing,                                              
                                                  Decisions will be entered           
                                             under Rule 155.                          
                                                                                     
                                                                                     
















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