- 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