Vashon C. and Beverly C. Jackson - Page 13




                                       - 13 -                                         
               Respondent determined that petitioners are liable for the              
          accuracy-related penalty imposed by section 6662(a) for their               
          underpayments of taxes for 1990, 1991, and 1992 that are                    
          attributable to their disallowed charitable contribution                    
          deductions, and that such underpayments were due to negligence or           
          disregard of rules or regulations.                                          
               Section 6662(a) imposes a 20-percent penalty on the portion            
          of an underpayment attributable to any one of various factors,              
          one of which is negligence or disregard of rules or regulations.            
          See sec. 6662(b)(1).  "Negligence" includes any failure to make a           
          reasonable attempt to comply with the provisions of the Internal            
          Revenue laws or to exercise ordinary and reasonable care in the             
          preparation of a tax return.  See sec. 6662(c); sec.                        
          1.6662-3(b)(1), Income Tax Regs.  It also includes any failure to           
          keep adequate books and records or to substantiate items                    
          properly.  See sec. 1.6662-3(b)(1), Income Tax Regs.  "Disregard"           
          includes any careless, reckless, or intentional disregard of                
          rules or regulations.  See sec. 6662(c); sec. 1.6662-3(b)(2),               
          Income Tax Regs.                                                            
               Section 6664(c)(1), however, provides that the section                 
          6662(a) penalty shall not apply to any portion of an                        
          underpayment, if it is shown that there was reasonable cause for            
          the taxpayer's position with respect to that portion of the                 
          underpayment and that the taxpayer acted in good faith with                 






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011