- 3 -
6621(c).3 In an amendment to answer, respondent asserted the
following: For taxable years 1978 and 1979, additions to tax for
negligence under section 6653(a); for taxable years 1978, 1979,
and 1981, additions to tax for valuation overstatement under
section 6659; and for taxable year 1981, additions to tax under
section 6653(a)(1) for negligence and under section 6653(a)(2) in
an amount equal to 50 percent of the interest due on the
underpayment attributable to negligence.4
In a notice of deficiency, respondent determined a
deficiency with respect to the joint Federal income tax return
filed by petitioners Black for 1981 in the amount of $74,111.
Respondent also determined additions to tax in the amount of
$7,411 under section 6661, in the amount of $3,705 under section
6653(a)(1) for negligence, and under section 6653(a)(2) in an
amount equal to 50 percent of the interest due on the
underpayment attributable to negligence. In an answer to
3 The notice of deficiency refers to sec. 6621(d). This
section was redesignated as sec. 6621(c) by sec. 1511(c)(1)(A) of
the Tax Reform Act of 1986, Pub. L. 99-514, 100 Stat. 2085, 2744
and repealed by sec. 7721(b) of the Omnibus Budget Reconciliation
Act of 1989 (OBRA 89), Pub. L. 101-239, 103 Stat. 2106, 2399,
effective for tax returns due after Dec. 31, 1989, OBRA 89 sec.
7721(d), 103 Stat. 2400. The repeal does not affect the instant
case. For simplicity, we will refer to this section as sec.
6621(c). The annual rate of interest under sec. 6621(c) for
interest accruing after Dec. 31, 1984, equals 120 percent of the
interest payable under sec. 6601 with respect to any substantial
underpayment attributable to tax-motivated transactions.
4 Corresponding dollar figures were not set out by respondent
for these asserted additions to tax.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011