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the deficiencies and the delinquency additions for both years.
Respondent has since conceded that the $5,047 from Gordon Anthony
for the taxable year 1990 was already included in the $5,179.06
previously reported from the corrected Form 1099 petitioner
received from Gordon Anthony. See supra note 2.
OPINION
Section 6662 imposes an accuracy-related penalty of 20
percent of the underpayment of tax required to be shown on a
return where the underpayment is attributable to negligence or
disregard of rules or regulations or to any substantial
understatement of income tax. Negligence includes any failure to
make a reasonable attempt to comply with the provisions of the
internal revenue laws or to exercise ordinary and reasonable care
in the preparation of a tax return. Sec. 6662(c); sec. 1.6662-
3(b)(1), Income Tax Regs. Negligence is strongly indicated where
a taxpayer fails to include on an income tax return an amount of
income shown on an information return such as a Form 1099. Sec.
1.6662-3(b)(1)(i), Income Tax Regs. Disregard includes any
careless, reckless, or intentional disregard of rules or
regulations. Sec. 6662(c); sec. 1.6662-3(b)(2), Income Tax Regs.
Apparently, in the notice of deficiency, the commissions of
$12,518 have already been deducted from the $76,259 to arrive at
the amount of unreported Schedule C income of $63,502. However
there appears to be a discrepancy of $239 that perhaps can be
resolved in the Rule 155 proceedings.
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