Gerald L. and Joy M. Zeidler - Page 25

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          to prove that either return was mailed or filed on time.                    
          Respondent, therefore, is sustained on these additions to tax.              
               Respondent determined the penalty under section 6662(a) for            
          negligence or disregard of rules or regulations for the 3 years             
          in question.  Section 6662(a) provides that, if it is applicable            
          to any portion of an underpayment in taxes, there shall be added            
          to the tax an amount equal to 20 percent of the portion of the              
          underpayment to which section 6662 applies.  The penalty is                 
          applicable to any underpayment attributable to negligence or                
          disregard of rules or regulations.  Sec. 6662(b)(1).  The term              
          "negligence" includes any failure to make a reasonable attempt to           
          comply with the provisions of the IRS laws, and the term                    
          "disregard" includes any careless, reckless, or intentional                 
          disregard of rules or regulations.  Negligence is the lack of due           
          care or failure to do what a reasonable and ordinarily prudent              
          person would do under the circumstances.  Neely v. Commissioner,            
          85 T.C. 934, 947 (1985).  Under section 6664(c), no penalty shall           
          be imposed under section 6662(a) with respect to any portion of             
          an underpayment if it is shown that there was reasonable cause              
          for such portion, and that the taxpayer acted in good faith with            
          respect to such portion.                                                    
               On this record, the Court holds that petitioners are liable            
          for the penalty under section 6662(a).  Petitioners claimed                 
          deductions for educational expenses on facts that were very                 

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