- 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.
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