David R. Green and Carolyn B. Green - Page 17

                                       - 17 -                                         

               In sum, in Green v. Commissioner, T.C. Summary Opinion 1995-           
          167, we held that the $18,120 attributable to the Jury Award was            
          includable in petitioners' income in 1991.  We likewise hold that           
          the $18,120 is includable in income for 1992 through 1995.  Also,           
          we find that the $17,880 is includable in income for 1991 through           
          1995.  Thus, the entire annual payment of $36,000 ($18,120 +                
          $17,880) is includable in income for each of the years from 1991            
          through 1995.                                                               
              Finally, we must decide whether petitioners are liable for             
          accuracy-related penalties in the amounts of $589 and $972 for              
          1994 and 1995, respectively.  Section 6662(a) imposes an                    
          accuracy-related penalty in the amount of 20 percent of the                 
          portion of an underpayment of tax attributable to negligence or             
          disregard of rules or regulations.  Sec. 6662(a) and (b)(1).                
          Negligence is any failure to make a reasonable attempt to comply            
          with the provisions of the internal revenue laws.  Sec. 6662(c);            
          sec. 1.6662-3(b)(1), Income Tax Regs.  Moreover, negligence is              
          the failure to exercise due care or the failure to do what a                
          reasonable and prudent person would do under the circumstances.             
          Neely v. Commissioner, 85 T.C. 934, 947 (1985).  Disregard                  
          includes any careless, reckless, or intentional disregard of                
          rules or regulations.  Sec. 6662(c); sec. 1.6662-3(b)(2), Income            
          Tax Regs.                                                                   







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  Next

Last modified: May 25, 2011