- 55 -
underpayment of taxes imposed by subtitle A for any taxable year
that is attributable to one or more tax-motivated transactions
if the amount exceeds $1,000. We concluded in White that no
part of the deficiency fit within the definition of a
substantial underpayment attributable to tax-motivated
transactions contained in section 6621(c). An underpayment
within the meaning of section 6621(c)(2) is an underpayment of
tax imposed by subtitle A. The only deficiencies in tax at
issue in White24 were deficiencies resulting from additions to
tax that are imposed by subtitle F.
In this case, the only items at issue other than additional
interest are additions to tax, and the additions to tax are
imposed by subtitle F, not subtitle A. No portion of the
deficiency involves an underpayment of tax imposed by subtitle
A. Because no portion of the deficiency before the Court is
attributable to tax imposed by subtitle A, no portion of the
deficiency before the Court can be a substantial underpayment
attributable to tax-motivated transactions. White v.
Commissioner, 95 T.C. at 216. Consequently, we also lack
24Sec. 6662(a)(2) provides that “Any reference in this title
to ‘tax’ imposed by this title shall be deemed also to refer to
the additions to the tax, additional amounts, and penalties
provided by this chapter.” Although sec. 6662(b) provides that
sec. 6662(a) shall not apply to certain additions to tax, we
concluded in White v. Commissioner, 95 T.C. at 215, that the
additions to tax imposed under secs. 6653(a)(1) and (2), and
6659, which were at issue therein, were taxes for purposes of the
deficiency procedures under sec. 6662(a)(2).
Page: Previous 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 NextLast modified: May 25, 2011