Larry Wade Human - Page 8

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               Section 6662(a) and (b)(1) impose a penalty equal to 20                
          percent of any portion of an underpayment attributable to                   
          negligence or disregard of rules or regulations.  Petitioner                
          bears the burden of proving that he is not liable for this                  
          penalty.  Rule 142(a); Luman v. Commissioner, 79 T.C. 846, 860-             
          861 (1982).                                                                 
               Negligence is defined as the lack of due care or failure to            
          do what a reasonable and prudent person would do under the                  
          circumstances.  Neely v. Commissioner, 85 T.C. 934, 947 (1985).             
          The term "disregard" includes any careless, reckless, or                    
          intentional disregard.  Sec. 6662(c).  Section 6664(c)(1)                   
          provides that no penalty shall be imposed under section 6662(a)             
          with respect to any portion of an underpayment if it is shown               
          that there was a reasonable cause for such portion and the                  
          taxpayer acted in good faith with respect thereto.  Whether the             
          taxpayer acted with reasonable cause and in good faith is                   
          determined on a case-by-case basis taking into account all of the           
          pertinent facts and circumstances.  Holowinski v. Commissioner,             
          T.C. Memo. 1997-168; Remy v. Commissioner, T.C. Memo. 1997-72;              
          sec. 1.6664-4(b)(1), Income Tax Regs.                                       
               If a taxpayer reasonably relies in good faith upon the                 
          advice of a competent and experienced accountant in the                     
          preparation of the taxpayer's return, the penalty for negligence            
          or disregard of rules or regulations is not applicable.  Weis v.            
          Commissioner, 94 T.C. 473, 487 (1990); Conlorez Corp. v.                    

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