Bill J. Malone, Jr. and Sarah J. Malone - Page 14

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          6662(a) and (b)(1).  Negligence is defined to include any failure           
          to make a reasonable attempt to comply with the provisions of the           
          Internal Revenue Code.  Sec. 6662(c).  It is further defined as             
          the failure to do what a reasonable person with ordinary prudence           
          would do under the same or similar circumstances.  Neely v.                 
          Commissioner, 85 T.C. 934, 947 (1985).  Disregard is defined to             
          include any careless, reckless, or intentional disregard.  Sec.             
          6662(c).  An accuracy-related penalty will not be imposed with              
          respect to any portion of an underpayment as to which the                   
          taxpayer acted with reasonable cause and in good faith.  Sec.               
          6664(c)(1).  Whether the taxpayer acted with reasonable cause and           
          in good faith depends on the pertinent facts and circumstances.             
          Sec. 1.6664-4(b)(1), Income Tax Regs.  Generally, an important              
          factor is the extent of the taxpayer’s effort to properly assess            
          the tax liability.  Circumstances that may indicate reasonable              
          cause and good faith include and an honest misunderstanding of              
          fact or law that is reasonable in light of the taxpayer’s                   
          experience, knowledge, and education.  Id.                                  
               Petitioners’ return for each year in issue was prepared by             
          petitioner, a practicing attorney.  Nothing in the record                   
          suggests that petitioner sought professional guidance or advice             
          in connection with the preparation of petitioners’ returns.                 
          Petitioner’s profession is relevant in deciding whether                     
          petitioners are liable for a penalty under section 6662(a),                 

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