- 2 - SUPPLEMENTAL OPINION TANNENWALD, Judge: This case is again before us because of differing computations for entry of decision under Rule 1551 submitted to implement our earlier opinion, Lemishow v. Commissioner, 110 T.C. 110 (1998). In that opinion, we held that none of the $480,414 withdrawn from petitioner's Individual Retirement Accounts and Keogh plans during 1993 constituted qualified rollovers and thus the total amount of the withdrawals was includable in income. We also held that the accuracy-related penalty (the penalty) under section 6662 did not apply to the underpayment of tax attributable to $377,895 of the unreported income which petitioner reinvested in an unsuccessful rollover attempt, but that the penalty did apply to that portion of the underpayment attributable to the $102,519 which petitioner did not reinvest. The penalty is "an amount equal to 20 percent of the portion of the underpayment * * * which is attributable to", in the instant case, negligence. Sec. 6662(a) and (b). In determining the amount of the penalty, respondent first calculated the total underpayment. Respondent then calculated the underpayment based 1 Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the taxable year at issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011