- 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 exceedPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011