Michael P. and Pamela J. Hopkins - Page 19

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               Respondent acknowledges that respondent has the burden of              
          production under section 7491(c) with respect to the accuracy-              
          related penalty under section 6662(a).  To meet that burden,                
          respondent must come forward with sufficient evidence showing               
          that it is appropriate to impose the accuracy-related penalty.              
          Higbee v. Commissioner, 116 T.C. 438, 446 (2001).                           
               Section 6662(a) imposes an accuracy-related penalty equal to           
          20 percent of the underpayment of tax attributable to, inter                
          alia, a substantial understatement of tax, sec. 6662(b)(2).  An             
          understatement is equal to the excess of the amount of tax                  
          required to be shown in the tax return over the amount of tax               
          shown in the tax return, sec. 6662(d)(2)(A), and is substantial             
          in the case of an individual if it exceeds the greater of 10                
          percent of the tax required to be shown or $5,000, sec.                     
          6662(d)(1)(A).                                                              
               The amount of the understatement shall be reduced to the               
          extent that it is attributable to, inter alia, the tax treatment            
          of an item for which there is or was substantial authority.  See            
          sec. 6662(d)(2)(B)(i).  In order to satisfy the substantial                 
          authority standard of section 6662(d)(2)(B)(i), petitioners must            
          show that the weight of authorities supporting their tax return             
          position is substantial in relation to those supporting a con-              
          trary position.  See Antonides v. Commissioner, 91 T.C. 686, 702            
          (1988), affd. 893 F.2d 656 (4th Cir. 1990).  That standard is not           






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