- 23 -
(quoting Grunwald v. Commissioner, 86 T.C. 85, 89 (1986))), affd.
without published opinion 40 F.3d 385 (5th Cir. 1994).6
Addition to Tax and Increased Interest
Section 6653(a) imposes additions to tax where the taxpayer
has acted negligently or with intentional disregard of rules and
regulations. Petitioners bear the burden of proof on this issue.
Rule 142(a); Bixby v. Commissioner, 58 T.C. 757, 791-792 (1972).
Petitioner Abraham Weiss is a certified public accountant
who has testified to substantial experience in preparing tax
returns. If there were convincing evidence available that
petitioners neither negligently nor intentionally disregarded the
applicable rules and regulations, Mr. Weiss, as an accountant,
plainly knew the importance of producing it. Petitioners failed
to adduce such evidence. We accordingly hold that they
intentionally or negligently failed to follow rules and
regulations and that they are chargeable with the addition to tax
under section 6653(a).
Section 6621(c) (formerly section 6621(d)) provides for an
increase in the interest rate where there is a substantial
underpayment (i.e., one that exceeds $1,000) in any taxable year
6 The petition claims that the delay in sending the notice
of deficiency is respondent's fault, and it asserts that interest
that has accrued on the deficiencies should be abated pursuant to
sec. 6404(e). Consideration of petitioners’ request for
abatement of interest is premature, however, as there has been
neither an assessment of interest nor a final determination by
respondent not to abate the interest. See sec. 6404(e), (g), as
currently in effect; see also Bourekis v. Commissioner, 110 T.C.
20, 26 (1998).
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