- 5 -
date, determined with regard to any extension of time for filing
previously granted, unless such failure was due to reasonable
cause and not willful neglect. Petitioners must prove both
reasonable cause and a lack of willful neglect. Petitioners
provided no reasonable cause as required by section 6651(a)(1)
for the late filing of their return. Accordingly, respondent's
determination of the addition to tax under section 6651(a) is
sustained.
Finally, we must decide whether petitioners are liable for
an accuracy-related penalty in the amount of $476 for 1993.
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. On this record, we uphold
respondent's determination that the penalty under section 6662(a)
should be imposed.
Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011