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opposed to original, returns.7 However, an amended return can
only be used to determine a taxpayer’s underpayment for purposes
of section 6662(a) if it is a “qualified amended return”. Sec.
1.6664-2(c)(2), Income Tax Regs. A qualified amended return is
one that is filed before “The time the taxpayer is first
contacted by the Internal Revenue Service concerning an
examination of the return”. Sec. 1.6664-2(c)(3)(i), Income Tax
Regs. As petitioner filed her amended returns after she was
notified of examination, petitioner’s amended returns are not
qualified.
We hold that respondent’s application of the section 6662(a)
penalty to the underpayment reflected in petitioner’s original
returns is correct, and petitioner’s good faith and reasonable
reliance, if any, after she filed her original returns and was
notified of an audit is of no consequence.
To reflect the foregoing,
Decision will be entered
for respondent.
7 While the statutory notice of deficiency reflects the
income tax deficiency reflected on petitioner’s amended returns,
the penalty has been applied to petitioner’s underpayment
reflected on the original returns.
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Last modified: May 25, 2011