- 12 -
"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).
Petitioner has offered no evidence to indicate that he acted
with reasonable cause and good faith with respect to some of the
issues discussed herein. Petitioner has failed in his burden to
establish that he is not liable for the accuracy-related penalty
as it applies to the portion of the deficiency resulting from the
disallowed business bad debt deduction, the omitted wage income,
and the disallowed casualty loss deduction.
With respect to the portion of the underpayment resulting
from the 10-percent addition to tax imposed by section 72(t), we
conclude that petitioner is not liable for the negligence
penalty. Petitioner reported the distributions from his pension
and IRA plans as income on his 1991 Federal income tax return.
Petitioner did not report the 10-percent additional tax,
believing that he qualified for the disability exception.
Although petitioner failed to qualify under the technical
provisions of the Internal Revenue Code and the regulations, we
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011