- 20 -
increase in deficiency. Respondent bears the burden of proving
the increases in deficiency and penalties asserted in his
Amendment to Answer. Rule 142(a); Sproul v. Commissioner, T.C.
Memo. 1995-207. Although petitioners have conceded that they are
liable for the increase in deficiency, petitioners have not
conceded that they are liable for the accuracy-related penalties
asserted in respondent's Amendment to Answer.
Respondent has failed to sustain the burden of proving the
penalties asserted in the Amendment to Answer. Respondent
erroneously assumed on brief that petitioners had the burden of
proof with respect to this issue, and therefore respondent
presented no proof that petitioners acted negligently or
intentionally disregarded the rules or regulations by failing to
report taxable distributions from petitioner husband’s pension
plan. Accordingly, we hold that petitioners are liable for the
accuracy-related penalties reflected in respondent's notice of
deficiency, but not for the accuracy-related penalties resulting
from the increases in the deficiencies.
To reflect the foregoing,
Decision will be entered
under Rule 155.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Last modified: May 25, 2011