- 12 - 31.3402(c)-1, Employment Tax Regs. Petitioner has not established reasonable cause for failing to make the required deposits of tax. Therefore, we sustain respondent’s determination. See Van Camp & Bennion v. United States, 251 F.3d 862 (9th Cir. 2001). Section 6662(a) imposes an accuracy-related penalty equal to 20 percent of the portion of an underpayment that is attributable to negligence. Petitioner’s contention that amounts paid to Kovacevich were not wages is meritless. See Van Camp & Bennion v. United States, supra at 869 (stating that the reasonable basis standard is not satisfied by “a return position that is merely arguable or that is merely a colorable claim”); Spicer Accounting Inc. v. United States, 918 F.2d 90 (9th Cir. 1990). Petitioner did not exercise due care in the filing of its return and thus is liable for the section 6662(a) penalty. Therefore, we sustain respondent’s determination. Contentions we have not addressed are irrelevant, moot, or meritless. To reflect the foregoing, An order denying petitioner’s motion to dismiss will be issued, and decision will be entered under Rule 155.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12
Last modified: May 25, 2011