- 10 - liability could be calculated. Beard v. Commissioner, supra at 779. However, noncompliance does not amount to concealment on these facts. Fourth, petitioners maintained continuous correspondence with respondent in regard to their case. The facts do not clearly show that petitioners intended to mislead respondent or conceal their tax liability. Rather, the facts show that they erroneously believed that they did not owe any tax. As this Court has previously stated, these types of arguments "may have been meritless, frivolous, wrongheaded, and even stupid, but we cannot hold that they amounted to fraud without something more. Were we to do so, every [tax] protester case would be automatically converted into a fraud case." Kotmair v. Commissioner, 86 T.C. 1253, 1262 (1986). We will, however, address below the consequences of pursuing such erroneous beliefs before this Court. The sixth issue for decision is whether petitioners are liable in the alternative for the section 6662(a) accuracy- related penalty for 1991. Respondent's determinations are presumed to be correct, and petitioners bear the burden of proving that the penalties do not apply. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933); Bixby v. Commissioner, 58 T.C. 757, 791-792 (1972). Section 6662(a) imposes a 20-percent penalty on the portion of the underpayment attributable to any one of various factors, one of which is negligence or disregard of rules or regulations.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011