12
Isolated computational errors are not inconsistent with
reasonable cause and good faith. Id.
Respondent determined an accuracy-related penalty on a
portion of the deficiency in the amount of $1,222. It is not
entirely clear to which adjustments this portion of the
underpayment is attributable. However, it appears that
respondent did not determine the penalty on the underpayment
attributable to self-employment taxes of $4,191 and the
associated reduction in income taxes resulting from the deduction
allowed with respect to the self-employment tax.
Based on the record, we find that the penalty does not apply
to the portion of the underpayment attributable to the adjustment
with respect to the taxable Social Security benefits.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011