Terry and Kathryn A. Roditski Dilozir - Page 12

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          3.  Accuracy-Related Penalty Under Section 6662(a)                          
               Respondent determined that petitioners were liable for the             
          accuracy-related penalty under section 6662(a) for 1993.  The               
          accuracy-related penalty is equal to 20 percent of any portion of           
          an underpayment attributable to a taxpayer's negligence or                  
          disregard of rules or regulations.  Sec. 6662(a) and (b)(1).  The           
          term "negligence" includes any failure to make a reasonable                 
          attempt to comply with the provisions of the Internal Revenue               
          Code, and the term "disregard" includes any careless, reckless,             
          or intentional disregard.  Sec. 6662(c).  The penalty does not              
          apply to any portion of an underpayment for which there was                 
          reasonable cause and with respect to which the taxpayer acted in            
          good faith.  Sec. 6664(c).  Generally, the Commissioner's                   
          determination imposing the accuracy-related penalty is presumed             
          correct, and taxpayers bear the burden of proving that they are             
          not liable for the accuracy-related penalty imposed by section              
          6662(a).  Rule 142(a); Tweeddale v. Commissioner, 92 T.C. 501,              
          505 (1989).                                                                 
               In this instance, petitioners have offered no evidence that            
          they made a reasonable attempt to report the items of income and            
          deductions in issue.  Petitioners have failed to meet their                 
          burden of proving that they are not liable for the accuracy-                
          related penalty.  We, therefore, sustain respondent's                       
          determination on this issue.                                                
               To reflect the foregoing,                                              




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