- 24 -
1989 and 1990 taxable years. The penalty under section 6662(a)
is similar to the addition to tax for negligence under section
6653(a)(1).
Section 6662(a) and (b)(1) provides that if any portion of
an underpayment of tax is attributable to negligence or disregard
of rules or regulations, then there shall be added to the tax an
amount equal to 20 percent of the amount of the underpayment
which is so attributable. The term "negligence" includes any
failure to make a reasonable attempt to comply with the statute,
and the term "disregard" includes any careless, reckless, or
intentional disregard. Sec. 6662(c). Petitioners have the
burden of proving that respondent's determination of the penalty
is in error. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115
(1933).
At trial petitioners did not address the issue of
negligence. As before, we are unable to find, independently,
circumstances that would exonerate petitioners from the penalty.
Therefore, we conclude that petitioners failed to carry their
burden of proof, and we sustain respondent's determination of the
penalty for negligence for 1989 and 1990.
Issue 6. Section 6651(a) Addition to Tax for Failure to Timely
File for 1990
For the taxable year 1990, petitioners requested two
extensions of time within which to file their return that
ultimately extended the filing deadline to October 15, 1991.
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011