Richard Alan Cronk - Page 10

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          tax returns by April 15, following the close of the calendar                
          year.  Petitioner’s 2001 return, due April 15, 2002, was not                
          filed with the IRS until April 23, 2002.  The return, therefore,            
          was filed late.  Petitioner presented no evidence to establish              
          reasonable cause for the delinquent filing of his return.                   
          Respondent, therefore, is sustained on this issue.                          
               The final issue is respondent’s determination that                     
          petitioner is liable for the penalty under section 6662(a).                 
               Section 6662(a) imposes an accuracy-related penalty in the             
          amount of 20 percent of any portion of an underpayment of tax               
          that is attributable to causes set forth in subsection (b).                 
          However, under section 6664(c), no penalty shall be imposed under           
          section 6662(a) with respect to any portion of an underpayment if           
          it is shown that there was a reasonable cause for the                       
          underpayment and that the taxpayer acted in good faith with                 
          respect to the underpayment.                                                
               Section 6662(b)(2) provides that the penalty is applicable             
          where there is a substantial understatement of tax.                         
               A substantial understatement exists where the amount of the            
          understatement exceeds the greater of 10 percent of the tax                 
          required to be shown on the return for the taxable year or                  
          $5,000.  Sec. 6662(d).  The understatement is reduced by the                
          portion of the understatement attributable to an item for which             
          there was either substantial authority for its treatment or                 





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