- 27 - income tax return for each year in issue, but it neglected to do so. Given the fact that taxpayers have a statutory duty to file timely income tax returns, we believe that a reasonable and ordinarily prudent person would have complied with the statutory duty to file timely such a return. We also believe that breach of this duty is evidence of negligence. Condor Intl., Inc., v. Commissioner, 98 T.C. 203, 225 (1992), affd. in part and revd. in part 78 F.3d 1355 (9th Cir. 1996); Emmons v. Commissioner, 92 T.C. 342, 349 (1989), affd. 898 F.2d 50 (5th Cir. 1990). The fact that petitioner was negligent in the instant case is also supported by the fact that petitioner erroneously claimed deductions for the interest expenses and its shareholder’s legal fees. See Condor Intl. Inc., v. Commissioner, supra at 225; Emmons v. Commissioner, supra at 349. We hold for respondent on this issue. 5. Section 6662 Respondent also determined that petitioner's underpayments of Federal income taxes for the 1989 and 1990 taxable years were due to negligence, and, accordingly, that they were subject to section 6662(a). Section 6662(a) imposes an accuracy-related penalty equal to 20 percent of the portion of the underpayment that is attributable to negligence. See also sec. 6662(b)(1).Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Next
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