- 10 - the provisions of the Code. Sec. 6662(c). “Disregard” includes any careless, reckless, or intentional disregard. Id. The penalties provided for in section 6662 will not be imposed with respect to any portion of an underpayment if it is shown that there was reasonable cause for such portion and that the taxpayer acted in good faith with respect to such portion. Sec. 6664(c)(1). Whether the taxpayer has acted with reasonable cause and in good faith is determined by relevant facts and circumstances, including the taxpayer’s own efforts to assess his proper tax liability. Stubblefield v. Commissioner, T.C. Memo. 1996-537; sec. 1.6664-4(b), Income Tax Regs. There is no support in this record that the payment petitioners received was a loan. There is nothing in the record that indicates that the underpayment was due to reasonable cause or that petitioners acted in good faith. Respondent is sustained on this issue. Reviewed and adopted as the report of the Small Tax Case Division. To reflect the foregoing, Decision will be entered for respondent.Page: Previous 1 2 3 4 5 6 7 8 9 10 11
Last modified: May 25, 2011