- 21 -
of the Sentinel EPE recyclers. Respondent is sustained on the
question of the underlying deficiencies. We note that
petitioners have explicitly conceded this issue in their
respective stipulations of settled issues filed shortly before
trial. The record plainly supports respondent's determinations
in these cases regardless of such concessions. For a detailed
discussion of the facts and the applicable law in a substantially
identical case, see Provizer v. Commissioner, supra.
Issue 1. Section 6653(a) Negligence
In notices of deficiency, respondent determined that
petitioners Marvin and Suzanne Yarnell and Philip and Roberta
Yarnell were liable for additions to tax for negligence under
section 6653(a)(1) and (2). The Yarnells have the burden of
proving that respondent's determinations of these additions to
tax are erroneous. Rule 142(a); Luman v. Commissioner, 79 T.C.
846, 860-861 (1982).
In amendments to answer, respondent asserted that
petitioners Reimann and Brodie were liable for additions to tax
for negligence under section 6653(a)(1) and (2). Because
respondent raised these additions to tax for the first time in
amendments to answer, respondent has the burden of proof on these
issues. Rule 142(a); Vecchio v. Commissioner, 103 T.C. 170, 196
(1994).
Section 6653(a)(1) imposes an addition to tax equal to 5
percent of the underpayment if any part of an underpayment of tax
is due to negligence or intentional disregard of rules or
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011