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Commissioner, 116 T.C. 438, 446-447 (2001). In order to meet his
burden of production, the Commissioner must come forward with
sufficient evidence indicating that it is appropriate to impose
the accuracy-related penalty. Id. at 446. Once the Commissioner
meets his burden of production, the taxpayer must come forward
with evidence sufficient to persuade a court that the
Commissioner's determination is incorrect. Id. at 447.
1. Accuracy-Related Penalty
Respondent determined that Mr. Spanier is liable for a
penalty for negligence under section 6662(a) for claiming the
dependency exemption deductions for his children. Respondent
also determined that if Mr. Spanier is determined to be entitled
to those dependency exemption deductions, Ms. Spanier would be
liable for a penalty for negligence under section 6662(a) for
claiming the same dependency exemption deductions.
Section 6662(a) imposes an accuracy-related penalty of 20
percent of the portion of the underpayment of tax attributable to
negligence or disregard of rules or regulations. See sec.
6662(a) and (b)(1). "Negligence" is defined as any failure to
make a reasonable attempt to comply with the provisions of the
internal revenue laws and includes any failure by the taxpayer to
keep adequate books and records or to substantiate items
properly. See sec. 6662(c); sec. 1.6662-3(b)(1), Income Tax
Regs. Moreover, negligence is the failure to exercise due care
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