Isaiah Israel - Page 13

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          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            






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