-6- therefore sustain respondent's determination that petitioner is liable for the additions to tax under section 6653(a)(1) and (2) for the 1982 tax year. 3. Section 6661 Addition to Tax In the notice of deficiency, respondent determined the section 6661 addition to tax at a rate of 10 percent of the underpayment for that year. As originally enacted, section 6661 provided for an addition to tax of 10 percent of the amount of any underpayment attributable to a substantial understatement of income tax liability, applicable to returns due after December 31, 1982. Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97-248, sec. 323, 96 Stat. 324, 615. In 1986, Congress amended section 6661(a) and provided for an addition to tax of 25 percent, where the assessment is made after October 21, 1986. Omnibus Budget Reconciliation Act of 1986, Pub. L. 99-509, sec. 8002, 100 Stat. 1874, 1951; see also Pallottini v. Commissioner, 90 T.C. 498 (1988). Although respondent correctly refers to the rate of the addition as 25 percent in her synopsis of legal authorities in her trial memorandum, she made no mention of the discrepancy between this rate and the 10 percent rate used in the notice of deficiency, and has not sought to amend the pleadings to assert an increase. Section 6214(a) grants this Court jurisdiction to determine a deficiency or addition to tax larger than that stated in the notice of deficiency, if respondent claims the increased amountPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011