- 25 - 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 veryPage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011