Benigno Antonio Gasparutti - Page 14

                                       - 14 -                                         

          not timely file Form 4868.  Accordingly, petitioner is liable for           
          the addition to tax under section 6651(a)(1).                               
          Accuracy-Related Penalty                                                    
               Respondent determined an accuracy-related penalty under                
          section 6662(a).  Section 6662(a) imposes a penalty of 20 percent           
          on any portion of an underpayment of tax that is attributable to            
          negligence or disregard of rules or regulations.  Sec. 6662(a)              
          and (b)(1).  “Negligence” is defined as any failure to make a               
          reasonable attempt to comply with the provisions of the Internal            
          Revenue Code, and the term “disregard” includes any careless,               
          reckless, or intentional disregard.  Sec. 6662(c).  A position              
          with respect to an item is attributable to negligence if it lacks           
          a reasonable basis.  Sec. 1.6662-3(b)(1), Income Tax Regs.                  
               Section 6664(c)(1) provides that the penalty under section             
          6662(a) shall not apply to any portion of an underpayment, if it            
          is shown that there was reasonable cause for the taxpayer’s                 
          position with respect to that portion and that the taxpayer acted           
          in good faith with respect to that portion.  Sec. 6664(c)(1).               
          The determination of whether a taxpayer acted with reasonable               
          cause and good faith within the meaning of section 6664(c)(1) is            
          made on a case-by-case basis, taking into account all the                   
          pertinent facts and circumstances.  Sec. 1.6664-4(b)(1), Income             
          Tax Regs.                                                                   

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Last modified: May 25, 2011