- 16 - basis, contemplating all the relevant facts and circumstances. Sec. 1.6664-4(b)(1), Income Tax Regs. Here, there is a substantial understatement of tax attributable to petitioners’ failure to report rental income in 1991. The total understatement and the amount required to be shown on the return was $17,097. The amount of the understatement attributable to the unreported rental income was $13,823. There is no evidence in the record that respondent was erroneous in the application and computation of the accuracy- related penalty. Petitioners offered no argument or excuse for their failure to report the rental income. Accordingly, we hold that respondent was not erroneous in his determination of a penalty. See Esposito v. Commissioner, T.C. Memo. 2001-131. Decision will be entered for respondent.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Last modified: May 25, 2011