Marian Wilson - Page 17

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          Special O elected to expense its equipment for the 1993 tax year,           
          it may not now withdraw that election and attempt to depreciate             
          the same equipment for 1993 without consent of the Commissioner.            
               We find that petitioner is not entitled to deduct section              
          179 expenses for the 1993 tax year.  Respondent is sustained on             
          this issue.                                                                 
          5.  Section 6662(a) Penalty                                                 
               Finally, we must decide whether petitioner is liable for an            
          accuracy-related penalty for the 1991, 1992, and 1993 tax years.            
               Section 6662(a) imposes an accuracy-related penalty equal to           
          20 percent of the portion of any underpayment of tax that is due            
          to negligence or disregard of rules or regulations.  Under                  
          section 6662(c), negligence is any failure to make a reasonable             
          attempt to comply with the provisions of the Code, and the term             
          "disregard" includes any careless, reckless, or intentional                 
          disregard.  Negligence includes the failure to exercise the due             
          care of a reasonable and ordinarily prudent person under the                
          circumstances.  See Neely v. Commissioner, 85 T.C. 934, 947                 
          (1985).  No penalty will be imposed on any portion of the                   
          underpayment if it is shown that there was reasonable cause for             
          such portion and that the taxpayer acted in good faith with                 
          respect to such portion.  See sec. 6664(c).  The most important             
          factor is the extent of the taxpayer's effort to assess his or              

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