- 7 - with reasonable cause and in good faith depends upon the pertinent facts and circumstances. Sec. 1.6664-4(b)(1), Income Tax Regs. The most important factor is the extent of the taxpayers' effort to assess their proper tax liability for the taxable year. Id. Although we found that petitioners' failure to timely file their 1990 return was due to reasonable cause, we find that the record fails to establish that petitioners acted with reasonable cause and in good faith in assessing whether petitioner's distribution from her profit sharing plan was taxable. Petitioners offered no evidence that they made a good faith effort to assess their proper tax liability. Based on this record, we conclude that petitioners are liable for the section 6662 accuracy-related penalty as determined by respondent. To reflect the foregoing, Decision will be entered under Rule 155.Page: Previous 1 2 3 4 5 6 7
Last modified: May 25, 2011