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Nothing in the record indicates that any amounts were previously
assessed or collected, or that any rebates were made to
petitioner. Therefore, there can be no underpayments in this
case because for each year in issue the tax imposed by the
Internal Revenue Code was zero and did not exceed the amount of
tax shown on the return.3 We therefore hold that petitioner is
not liable for the accuracy-related penalties determined by
respondent.
Reviewed and adopted as the report of the Small Tax Case
Division.
To reflect the foregoing,
Decision will be entered
under Rule 155.
3Compare the definition of an underpayment in sec. 6664(a)
with the definition of a deficiency in sec. 6211(a). While the
definitions are substantially similar, the latter--in contrast to
the former--treats the excess of the earned income credit claimed
(or allowed) over the tax shown (or imposed) as a negative amount
of tax. See sec. 6211(b)(4).
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Last modified: May 25, 2011