Robert P. Neumann and Sally A. Neumann - Page 9

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          investigation of the Alamo partnerships, were not the actions               
          that a reasonable and ordinary prudent person would have taken              
          under the circumstances.  Accordingly, we conclude that the                 
          underpayments for the years at issue were due to negligence under           
          section 6653.                                                               
               If the Court finds petitioners negligent, as we have,                  
          petitioners request a finding under section 6653(a)(2) as to the            
          portion of the underpayment that is attributable to negligence,             
          and the time period during which the underpayments were unpaid.             
          Petitioners' concerns about the periods for which section                   
          6653(a)(2) applies can be addressed in the Rule 155 computation.            
               Section 6653(c)(1) defines an underpayment in the case of a            
          tax to which section 6211 is applicable as "a deficiency as                 
          defined in [section 6211]."  Under section 6211, the term                   
          deficiency means "the amount by which the tax imposed * * *                 
          exceeds the excess of * * * the amount shown as the tax by the              
          taxpayer upon his return."  In determining whether an                       
          underpayment exists, the tax shown on the taxpayer's return                 
          "shall be taken into account only if such return was filed on or            
          before the last day prescribed for the filing of such return."              
          Sec. 6653(c)(1).  The tax reported on an amended return filed               
          subsequent to the due date of the original return does not negate           
          the existence of an understatement.  Emmons v. Commissioner, 92             







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