- 12 -
that if any portion of any underpayment required to be shown on a
return is due to negligence or disregard of the rules or
regulations, then a taxpayer will be liable for a penalty equal
to 20 percent of the underpayment of tax required to be shown on
the return that is attributable to the taxpayer’s negligence or
disregard of the rules or regulations. Sec. 6662(a) and (b)(1).
“Negligence” includes any failure to make a reasonable attempt to
comply with the provisions of the Code. Sec. 6662(c).
“Disregard” includes any careless, reckless, or intentional
disregard. Id.
The penalties provided for in section 6662 will not be
imposed with respect to any portion of an 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.
Sec. 6664(c)(1). Whether the taxpayer has acted with reasonable
cause and in good faith is determined by relevant facts and
circumstances, including the taxpayer’s own efforts to assess his
proper tax liability. Stubblefield v. Commissioner, T.C. Memo.
1996-537; sec. 1.6664-4(b), Income Tax Regs.
Respondent determined in the notice of deficiency that
petitioner is liable for an accuracy-related penalty of $784
under section 6662(a) for 1996 because of negligence or disregard
of rules or regulations.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011