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motions for judgment on the pleadings to remove the penalties
from the scope of those motions and, thus, to limit them to the
deficiencies in each case. Respondent explained his action in
amending the motions for judgment on the pleadings as resulting
from his concern that the pleadings alone did not satisfy the
burden of production that section 7491 imposes on him with
respect to petitioners’ liabilities for the section 6662
penalties.6 See sec. 7491(c). Apparently, respondent was
concerned that, because of section 7491(c), we would refuse to
enter judgment on the pleadings with respect to the section 6662
penalties.
2. Section 6662 Accuracy-Related Penalties
Section 6662(a) provides for an accuracy-related penalty in
the amount of 20 percent of the portion of any underpayment of
tax attributable to, among other things (1) negligence or
disregard of rules or regulations (hereafter, simply, negligence)
or (2) any substantial understatement of tax. Negligence has
6 Because of respondent’s amendments to the motions for
judgment on the pleadings, we do not determine the adequacy of
petitioners’ pleadings with respect to the sec. 6662 penalties.
Rule 34(b)(4) provides that the petition shall contain: “Clear
and concise assignments of each and every error which the
petitioner alleges to have been committed by the Commissioner in
the determination of the deficiency or liability. * * * Any
issue not raised in the assignments of error shall be deemed to
be conceded.” We need not determine whether, in fact,
petitioners failed to assign error to respondent’s determinations
of the sec. 6662 penalties and, thus, are deemed to concede their
liabilities for such penalties, thereby allowing for judgment on
the pleadings with respect to such liabilities.
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