Douglass H. and Suzanne M. Bartley - Page 23

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          1(i), Income Tax Regs.  Furthermore, petitioners provided Forms             
          2119 and 4797 on September 16, 1996, only after being requested to          
          do so by the IRS auditor; but they failed to execute the forms.12           
               Petitioners failed to satisfy the requirements of section              
          1034.  Petitioner, as a tax attorney and former Wisconsin Tax               
          Appeals commissioner, knew, or at least should have known, of the           
          section  1034  requirements;  he  chose  not  to  follow  them.             
          Petitioners failed to demonstrate that they were not negligent.             
          See, e.g., Milkowski v. Commissioner, T.C. Memo. 1983-406; Notter           
          v. Commissioner, T.C. Memo. 1982-96.  Indeed, the record indicates          
          that they were.                                                             
               Accordingly, we sustain respondent's determinations with               
          respect to the section 6662(a) accuracy-related penalty.                    
               To reflect the foregoing and petitioners' concessions,                 

                                                  Decision will be entered            
                                             for respondent.                          

               12   Petitioners argue that they filed a 1994 Form 2688,               
          Application for Additional Extension of Time To File U.S.                   
          Individual Income Tax Return, which notified the IRS of the sale            
          of the Mequon residence.  At most, Form 2688 notified respondent            
          that petitioners sold a residence in 1994, which would have been            
          their Ely residence.                                                        

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