- 13 -
Service. Respondent has met his burden of production for his
determination of the accuracy-related penalty under section
6662(a) on the basis of negligence or disregard of rules or
regulations for 1996, 1997, and 2000.
Even though respondent has met his burden of production, the
accuracy-related penalty will not be imposed if petitioner can
establish that he acted with reasonable cause and in good faith.
See sec. 6664(c)(1). The record is devoid of any evidence of
reasonable cause and good faith on the part of petitioner. No
attempt has been made to comply with applicable rules and
regulations, and accordingly, we hold that petitioner is liable
for the accuracy-related penalties under section 6662(a). See
Higbee v. Commissioner, supra.
B. Section 6673
Respondent does not ask the Court to impose a penalty on
petitioner under section 6673(a)(1). The Court may sua sponte
determine whether to impose such a penalty. See Frank v.
Commissioner, T.C. Memo. 2003-88; Robinson v. Commissioner, T.C.
Memo. 2003-77; Keene v. Commissioner, T.C. Memo. 2002-277;
Schmith v. Commissioner, T.C. Memo. 2002-252; Schroeder v.
Commissioner, T.C. Memo. 2002-190; Williams v. Commissioner, T.C.
Memo. 2002-111.
Section 6673(a)(1) authorizes the Court to require a
taxpayer to pay to the U.S. a penalty in an amount not to exceed
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011