Neal N. and Ruby W. Viar - Page 16

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               The final issue is whether petitioners are liable for the              
          accuracy-related penalty under section 6662(a) for the years at             
          issue.  As relevant here, section 7491(c) places the burden of              
          production on respondent in court proceedings with respect to the           
          liability of any individual for any penalty, addition to tax, or            
          additional amount imposed.   The additional tax imposed pursuant            
          to section 6662(a) falls within the scope of section 7491(c).               
          Respondent, therefore, bears the burden of production on this               
          issue.  However, petitioners continue to bear the burden of                 
          proving that respondent's determination is incorrect.  Higbee v.            
          Commissioner, 116 T.C. 438, 446-447 (2001).                                 
               Section 6662(a) provides for an accuracy-related penalty               
          equal to 20 percent of any portion of an underpayment of tax                
          required to be shown on the return that is attributable to the              
          taxpayer’s negligence or disregard of rules or regulations.  Sec.           
          6662(a) and (b)(1).  Negligence consists of any failure to make a           
          reasonable attempt to comply with the provisions of the Internal            
          Revenue Code.  Sec. 6662(c).  Disregard consists of any careless,           
          reckless, or intentional disregard.  Id.                                    
               The courts have refined the Code definition of negligence as           
          a lack of due care or failure to do what a reasonable and prudent           
          person would do under similar circumstances.  Allen v.                      
          Commissioner, 925 F.2d 348, 353 (9th Cir. 1991), affg. 92 T.C. 1            
          (1989).  Treasury regulations further provide that negligence               

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