- 23 -
$2,164.00 Withholding credits
- $ 390.00 Ingrid Capehart’s allocable share
of the $1,444.00 liability report
on the return
$1,774.00 Frozen Refund Credit
Respondent computed petitioner’s share of the accuracy-
related penalty as follows:
Petitioner’s share of deficiency as
computed by respondent $2,820
Petitioner’s frozen refund credit (1,774)
Petitioner’s underpayment upon which
the accuracy-related penalty applies 1,046
Accuracy-related penalty percentage x 0.20
209
2. Petitioner’s Position
Petitioner erroneously refers to the $1,444 tax shown on the
return as the tax “paid” on the return and complains that
respondent allocated only $390 of that tax to her in computing
her share of the accuracy-related penalty. The gist of
petitioner’s complaint is that the $390 of tax allocated to her
represents 27 percent of the tax “paid” on the return ($1,444),
whereas the $209 of the section 6662(c) penalty allocated to her
is 41 percent of the total section 6662(a) penalty.
3. Computation of Petitioner’s Share of the Accuracy-
Related Penalty
Section 1.6015-3(d)(4)(iv)(B), Income Tax Regs., provides
that the accuracy-related penalty under section 6662 is
“allocated to the spouse whose item generated the penalty.” As
we have previously discussed, the erroneous items allocated to
petitioner offset all of her taxable income reported on the joint
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011