- 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 imposed
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011