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imposes an addition to tax of 5 percent of the underpayment if
any part of the underpayment is due to negligence or
intentional disregard of rules or regulations. Section 6653(a)(2)
20(...continued)
(A) with respect to the portion of the
underpayment described in paragraph (1) which is
attributable to the negligence or intentional
disregard referred to in paragraph (1),* * *
Sec. 6653(a), as in effect for 1986,
provides in pertinent part, as follows:
SEC. 6653. ADDITIONS TO TAX FOR NEGLIGENCE
AND FRAUD.
(a) Negligence.---
(1) In general.--If any part of any underpayment
(as, defined in subsection (c)) is due to negligence
or disregard of rules or regulations, there shall be
added to the tax an amount equal to the sum of--
(A) 5 percent of the underpayment, and
(B) an amount equal to 50 percent of the
interest payable under section 6601 with respect
to the portion of such underpayment which is
attributable to negligence for the period
beginning on the last date prescribed by law for
payment of such underpayment (determined without
regard to any extension) and ending on the date
of the assessment of the tax (or, if earlier,
the date of the payment of the tax).
The later amendment of this provision by sec.
1015(b)(2)(A) of the Technical and Miscellaneous Revenue
Act of 1988, Pub. L. 100-647, 102 Stat. 3342, 3569, does
not affect the instant case.
As a result of secs. 7721(a) and 7721(c)(1) of the
omnibus Budget Reconciliation Act of 1989 (OBRA 89), Pub.
L. 101-239, 103 Stat. 2106, 2395, 2399, the revised
negligence, etc., addition to tax now appears in subsecs.
(b)(1) and (c) of sec. 6662, I.R.C. 1986.
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