-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 As originally enacted, section 6661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 amount
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011