- 40 -
Commissioner, 925 F.2d 348, 353 (9th Cir. 1991), affg. 92 T.C. 1
(1989); Bunney v. Commissioner, 114 T.C. 259, 266 (2000); sec.
1.6662-3(b)(1), Income Tax Regs. The term “disregard” includes
any careless, reckless, or intentional disregard. Sec. 6662(c);
sec. 1.6662-3(b)(2), Income Tax Regs.
The penalty imposed by section 6662(a) and (b)(1) will not
apply if a taxpayer shows there was reasonable cause for any
portion of an underpayment and the taxpayer acted in good faith
with respect to that portion. See sec. 6664(c)(1); sec. 1.6664-
4(a), Income Tax Regs. The determination of whether a taxpayer
acted in good faith is made on a case-by-case basis, taking into
account all the pertinent facts and circumstances. See Compaq
Computer Corp. v. Commissioner, 113 T.C. 214, 226 (1999); sec.
1.6664-4(b)(1), Income Tax Regs.
Petitioner bears the burden of proving that respondent’s
determination is erroneous. See Rule 142(a); Allen v.
Commissioner, 925 F.2d at 353; Axelrod v. Commissioner, 56 T.C.
248, 258 (1971).
A. Stipulated and Computational Issues
Respondent proposed several adjustments with respect to
petitioner’s returns for the years in issue. Some of the
adjustments were settled before trial, as reflected in the
stipulations of settled issues, or are computational. See supra
note 2. Petitioner introduced evidence at trial, and argued on
Page: Previous 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 NextLast modified: May 25, 2011