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Section 6654(a)
The section 6654 addition to tax for failure to pay
estimated tax is mandatory unless the taxpayer establishes that a
statutory exception applies. Grosshandler v. Commissioner, 75
T.C. 1, 20-21 (1980). Mr. Stafford is deemed to have stipulated
that additions to tax under section 6654(a) for 1989 and 1990 are
due from him because he underpaid his estimated tax for both
years. Accordingly, there is no genuine issue of material fact
as to this issue, and respondent's motion for summary judgment
thereon with respect to Mr. Stafford will be granted.
Section 6662(a)
Section 6662(a) imposes a 20-percent penalty on the portion
of an underpayment attributable to, inter alia, negligence or
disregard of rules or regulations.5 Mrs. Stafford is deemed to
have stipulated that the section 6662(a) penalties are due from
her for the underpayment of tax for 1989 and 1990. Accordingly,
there is no genuine issue of material fact regarding Mrs.
Stafford's liability for these penalties, and respondent's motion
for summary judgment thereon will be granted.
3. The Section 6673 Penalty
Petitioners are advised of the provisions of section 6673
giving this Court authority to impose a penalty of up to $25,000
5 Respondent determined in the notice of deficiency with
respect to Mrs. Stafford that all or part of the underpayment for
1990 and 1991 is due to negligence or intentional disregard of
rules or regulations.
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Last modified: May 25, 2011