- 30 -30
rules or regulations. As an alternative to the fraud additions to
tax and penalty for 1986 through 1989, respondent determined
additions to tax for negligence or disregard of rules or
regulations pursuant to sections 6653(a)(1)(A) and (a)(1)(B) for
1986 and 1987 and section 6653(a)(1) for 1988 and an accuracy-
related penalty pursuant to section 6662 for 1989.
The addition to tax for negligence or disregard of rules or
regulations, or the accuracy-related penalty, cannot be imposed on
one spouse (here, Mrs. Zaban) where the other spouse (here, Mr.
Zaban) is liable for fraud. Unlike the fraud addition to tax which
is imposed on each spouse separately even if a joint return is
filed, sec. 6663(c); sec. 301.6653-1(f), Proced. & Admin. Regs.,
the negligence addition to tax and the accuracy-related penalty
apply jointly and severally. Thus, where a joint return is filed
and one spouse is liable for fraud with respect to the entire
underpayment, the imposition of the negligence addition to tax or
accuracy-related penalty with respect to the other spouse would
result in impermissible stacking. Sec. 6662(b); Aflalo v.
Commissioner, T.C. Memo. 1994-596; Minter v. Commissioner, T.C.
Memo. 1991-448; Congelliere v. Commissioner, T.C. Memo. 1990-265.
Thus, we hold that Mrs. Zaban cannot be liable, and thus is not
liable, for the additions to tax for negligence or disregard of
rules or regulations, or the accuracy-related penalty for
negligence or disregard of rules or regulations, for 1986 through
1989.
Page: Previous 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 NextLast modified: May 25, 2011