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Bulletin”. Sec. 1.6662-3(a), Income Tax Regs. The section
6662(a) accuracy-related penalty will not apply to such a
position where the position has a realistic possibility of being
sustained on its merits. Sec. 1.6662-3(a), Income Tax Regs.75
Petitioners have not indicated which revenue ruling or
notice, if any, their positions contradict. Accordingly, we
decline to give this argument further consideration.
B. Petitioners’ Second Theory
Petitioners assert that the “voluminous record” and the
“mandatory national office review” of respondent’s brief
illustrate the complex and technical nature of the issues. For
this reason, petitioners argue, the section 6662(a) accuracy-
related penalties do not apply.
Although we agree with petitioners that the state of the
record in this case suggests that the parties had difficulties
with the issues, we disagree that the three issues for which
respondent determined penalties are actually complex or technical
in nature. Menards’s payments of both the TMI expenses and
interest accrued on Mr. Menard’s loans to the company were
straightforward transactions. We reject petitioners’ argument.
75Sec. 1.6694-2(b), Income Tax Regs. contains the realistic
possibility standard. See sec. 1.6662-3(a), Income Tax Regs.
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