O.S.C. & Associates, Inc. d.b.a. Olympic Screen Crafts - Page 11

                                       - 11 -                                         
          the circumstances.  Neely v. Commissioner, 85 T.C. 934, 947                 
          (1985).  It includes the failure to make a reasonable attempt to            
          comply with the Internal Revenue Code.  Sec. 6662(c).  In                   
          determining whether a corporation is liable for the negligence              
          penalty, the acts of officers on behalf of the corporation are              
          imputed to the corporation.  DiLeo v. Commissioner, 96 T.C. 858,            
          875 (1991), affd. 959 F.2d 16 (2d Cir. 1992); Auerbach Shoe Co.             
          v. Commissioner, 21 T.C. 191, 194 (1953), affd. 216 F.2d 693 (1st           
          Cir. 1954); Ibabao Med. Corp. v. Commissioner, T.C. Memo. 1988-             
               We conclude that petitioner failed to exercise ordinary                
          care.  The record establishes that the plan was both designed and           
          manipulated to direct the flow of corporate earnings to Messrs.             
          Blazick and Richter and to disguise such payments as                        
               We have considered all other arguments made by the parties             
          and found them to be either irrelevant or without merit.                    
               To reflect the foregoing,                                              

                                                  Decision will be entered            
                                             for respondent.                          

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  

Last modified: May 25, 2011