Marie Suze Bien-Aime - Page 9

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          keep adequate books and records or to substantiate items                    
          properly.  Sec. 1.6662-3(b)(1), Income Tax Regs.  The term                  
          "disregard" includes any careless, reckless, or intentional                 
          disregard.  Sec. 6662(c).                                                   
               No penalty shall be imposed if it is shown that there was              
          reasonable cause for the underpayment and the taxpayer acted in             
          good faith with respect to the underpayment.  Sec. 6664(c).  The            
          determination of whether a taxpayer acted with reasonable cause             
          and in good faith is made on a case-by-case basis, taking into              
          account all pertinent facts and circumstances.  The most                    
          important factor is the extent of the taxpayer's effort to assess           
          the taxpayer's proper tax liability.                                        
               The evidence in the record shows that petitioner failed to             
          report substantial amounts of income for her 2000 and 2001 tax              
          years.  Petitioner made no effort to review the returns before              
          signing them and blamed her return preparer for the omissions.              
               Taxpayers have a duty to read a return and to make sure all            
          items are included.  Magill v. Commissioner, 70 T.C. 465, 479-480           
          (1978) (citing Bailey v. Commissioner, 21 T.C. 678, 687 (1954)),            
          affd. 651 F.2d 1233 (6th Cir. 1981).  Petitioner's failure to               
          carefully review her return was not reasonable.  See Guenther v.            
          Commissioner, T.C. Memo. 1995-280.  On the basis of the record,             
          the Court concludes that petitioner is liable for the                       
          accuracy-related penalty under section 6662(a) for 2000 and 2001.           






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