William Spencer Bach and Barbara Ruth Bach - Page 14

                                       - 14 -                                         
               Petitioner Barbara Bach made contributions totaling $4,000             
          to her IRA during 1987.  Under section 4973(a), a 6-percent tax             
          is imposed on excess contributions to an IRA.  An excess                    
          contribution is defined as an amount contributed to an IRA less             
          any qualified rollovers and less the amount allowable as a                  
          deduction under section 219.  Sec. 4973(b)(1).  Section 219(b)              
          allows a maximum deduction of $2,000 for a contribution to Ms.              
          Bach's IRA.  Because Ms. Bach made an excess contribution of                
          $2,000 to her IRA, none of which constituted a qualified                    
          rollover, she is subject to this tax.                                       

          Addition to Tax for Failure To File a Timely Return                         

               Respondent determined that petitioners are liable for an               
          addition to tax under section 6651(a)(1).  Petitioners filed                
          their 1987 Federal income tax return on November 21, 1988.                  
          Petitioners bear the burden of proof on this issue.  Abramo v.              
          Commissioner, 78 T.C. 154, 163 (1982).  Petitioners did not                 
          address this issue on brief, nor is there any evidence in the               
          record that would lead us to conclude that they had a reasonable            
          excuse for not filing their 1987 return until November 21, 1988.            
          See sec. 6651(a)(1).  Thus, we sustain respondent's                         
          determination.                                                              

          Additions to Tax for Negligence                                             







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011