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Petitioner never received any documents from his former spouse,
and she never divulged any information to him.7
Petitioner’s accountant, David R. Barrett (Mr. Barrett),
prepared petitioner’s Federal income tax return for 2000. Mr.
Barrett has prepared petitioner’s income tax returns since 1990
(including petitioner’s and his former spouse’s joint returns
during their marriage).8 In his 2000 return, petitioner reported
only the income from his individual brokerage accounts as
disclosed in the Forms 1099.
During the administrative phase of this case, respondent
proposed a deficiency in petitioner’s income tax for 2000 of
$14,499 because of petitioner’s failure to report dividends and
capital gains from the education accounts. Upon learning of the
income, petitioner promptly paid the proposed deficiency in full.
In the notice of deficiency, respondent determined that
petitioner was liable for an accuracy-related penalty under
section 6662(a) because of his failure to report income from the
education accounts.
Discussion
The Commissioner bears the burden of production with respect
to a taxpayer’s liability for any penalty. Sec. 7491(c). To
7 Petitioner’s former spouse claimed to have forwarded
everything to him and that there were no Forms 1099.
8 Mr. Barrett also prepares the income tax returns for the
Monte Educational Trust.
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Last modified: May 25, 2011