- 8 - dent does not rely in respondent’s motion. For example, Mr. Wilson alleges that his “fine & IRS obligation that was ruled by Judge Legg [in the U.S. District Court] is settled and satisfied and paid in full.” Assuming arguendo that Mr. Wilson has in fact paid what he refers to as a “fine”9 and the restitution ordered by the judgment in Mr. Wilson’s criminal tax proceeding, those facts are not material to our resolving the issues raised in respondent’s motion. The payment of a fine, an assessment, or restitution for income tax evasion under section 7201 does not bar imposition of the fraud penalty under section 6663.10 Addi- tions to tax, like those imposed for fraud under section 6663, are remedial, and not punitive. Helvering v. Mitchell, 303 U.S. 391, 401 (1938); Thomas v. Commissioner, 62 F.3d 97, 100 (4th Cir. 1995), affg. T.C. Memo. 1994-128; Ianniello v. Commissioner, 98 T.C. 165, 187 (1992). Such additions to tax are provided primarily as a safeguard for the protection of the revenue and to reimburse the Government for the significant expense of investi- gation and the loss resulting from a taxpayer’s actions or omissions. Helvering v. Mitchell, supra. 9The judgment in Mr. Wilson’s criminal tax proceeding did not order Mr. Wilson to pay a fine. That judgment, inter alia, ordered Mr. Wilson to pay an assessment of $250. 10We note that respondent states in respondent’s reply that “assuming that the income tax liabilities were paid, the peti- tioners’ [sic] shall receive credit for the payment upon assess- ment of the tax liabilities.”Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011