- 6 - 6662(a) imposes an accuracy-related penalty equal to 20 percent of the portion of an underpayment that is attributable to negligence, and petitioner will avoid this charge only if the record shows that she was not negligent; i.e., she made a reasonable attempt to comply with the provisions of the Internal Revenue Code, and she was not careless, reckless, or in intentional disregard of rules or regulations. Sec. 6662(c); Drum v. Commissioner, T.C. Memo. 1994-433, affd. without published opinion 61 F.3d 910 (9th Cir. 1995); see also Allen v. Commissioner, 925 F.2d 348, 353 (9th Cir. 1991) (negligence defined as a lack of due care or a failure to do what a reasonable and prudent person would do under similar circumstances), affg. 92 T.C. 1 (1989). Because the record does not show that petitioner was not negligent, we sustain respondent's determination on the applicability of this penalty. In reaching our holdings herein, we have considered all arguments by petitioner for contrary holdings, and, to the extent not discussed above, find those arguments to be irrelevant or without merit. To reflect respondent's concession, Decision will be entered under Rule 155.Page: Previous 1 2 3 4 5 6
Last modified: May 25, 2011