- 7 - B. Additions to Tax The income tax assessment against petitioners includes additions to tax under section 6651(a)(1) and (2). Petitioners did not receive a notice of deficiency or otherwise have an opportunity to dispute the additions to tax relating to their income liabilities; therefore, they can challenge them during the section 6330 proceeding. Sec. 6330(c)(2)(B); see Montgomery v. Commissioner, 122 T.C. 1, 7 (2004). We review de novo respondent’s determination with respect to these additions to tax. Goza v. Commissioner, supra at 181-182. Section 6651(a)(1) imposes an addition to tax of 5 percent per month of the amount of tax required to be shown on the return, not to exceed 25 percent, for failure to timely file a return. Section 6651(a)(2) imposes an addition to tax for failure to pay timely the amount shown as tax in any return. The addition under section 6651(a)(2) is in an amount of 0.5 percent of the amount of such tax for each month or fraction thereof that the tax remains unpaid, not to exceed 25 percent in the aggregate. Under section 6651(c)(1) the 5 percent for each additional month imposed by section 6651(a)(1) is reduced by the amount of the addition to tax under section 6651(a)(2) to 4.5 percent for any month in which both additions are imposed. The additions to tax under section 6651(a)(1) and (2) are imposedPage: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011