- 6 - Unreported Income Respondent’s determination of additional Schedule C income of $1,597 is based on third-party information submitted on Forms 1099-MISC. Petitioner does not dispute that her former husband may have received the income reported. We sustain respondent’s determination with respect to this issue. Penalty Under Section 6662(a) Relevant here, section 6662(a) imposes a penalty in the amount of 20 percent of the underpayment due, inter alia, to negligence or to a substantial understatement of tax. Neither in the notice of deficiency nor at trial did respondent specify which ground applied here. We do not find that the negligence penalty is appropriate here with regard to this petitioner, and therefore, we focus on whether there was a substantial understatement. A substantial understatement is defined, inter alia, as an understatement of tax that exceeds 10 percent of the tax required to be shown on the return. Sec. 6662(d)(1)(A)(i). The understatement here exceeds 10 percent of the tax required to be shown on the return. See sec. 6662(d)(2). Petitioner has not shown that any of the circumstances contained in section 6662(d)(2)(B) apply. Innocent Spouse Relief A requesting spouse may elect relief from joint and several liability under section 6015. There are three types of reliefPage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011