- 5 - under section 6662(a) for 1994. Respondent also determined additions to tax under sections 6651(a) and 6654(a)3 for 1995. The Commissioner's determinations are presumptively correct, and the taxpayer bears the burden of proving otherwise. See Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Petitioners did not address the additions to tax or the accuracy- related penalty and have therefore failed to meet their burden. Accordingly, the additions to tax and the accuracy-related penalty are sustained.4 By motion made at the conclusion of trial, respondent requested the Court to impose a penalty on petitioners under section 6673. Section 6673(a)(1) authorizes the Tax Court to require a taxpayer to pay to the United States a penalty not to exceed $25,000 if the proceedings have been instituted or maintained by the taxpayer primarily for delay or if the taxpayer's position in such proceedings is frivolous or groundless. See sec. 6673(a)(1)(A) and (B). A position maintained by the taxpayer is "frivolous" where it is "contrary to established law and unsupported by a reasoned, colorable 3The addition to tax for 1995 under sec. 6654(a) applies only to petitioner, as determined by separate notice of deficiency. 4We do not sustain, however, the addition to tax pursuant to sec. 6654(a) for 1994. Petitioners filed a joint Federal income tax return for 1994. Therefore, we lack jurisdiction over the addition to tax pursuant to sec. 6654(a) for 1994. See sec. 6665(b)(2).Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011