Jerry V. Rice - Page 4

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          does not determine a deficiency for 1989 but merely gives notice            
          to petitioner of respondent's determination that petitioner is              
          liable for a penalty pursuant to section 6663.                              
               Section 6665 provides that "additions to the tax, additional           
          amounts, and penalties * * * shall be paid upon notice and demand           
          and shall be assessed, collected, and paid in the same manner as            
          taxes".  A deficiency in tax is assessed, collected, and paid               
          only after respondent makes a determination and sends a notice of           
          that determination in accordance with section 6213, which                   
          provides for the jurisdiction of this Court.  Eck v.                        
          Commissioner, 16 T.C. 511, 515 (1951), affd. per curiam 202 F.2d            
          750 (2d Cir. 1953).  Thus, respondent, in sending a notice                  
          determining petitioner was liable for a section 6663 penalty, was           
          complying with the law that requires him to proceed in the same             
          manner as if there were a deficiency.  "The statute was intended            
          to mean * * * that where such a notice was sent, the Tax Court              
          has jurisdiction."  Id.  Accordingly, a statutory notice from               
          respondent, in which no deficiency is determined, advising the              
          taxpayer that a penalty for fraud is due, is a valid basis for              
          jurisdiction to this Court.                                                 
               The penalty in the case of fraud is a civil sanction                   
          provided primarily as a safeguard for the protection of the                 
          revenue and to reimburse the Government for the heavy expense of            
          investigation and the loss resulting from the taxpayer's fraud.             

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