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were subsequently disallowed partnership deductions which totaled
$3,055,313. The petition filed at docket No. 7714-96 by the tax
matters partner in response to the FPAA issued to Durham for the
taxable year 1991 was untimely. Accordingly, the case was
dismissed, and by an assessment made in September 1996,
respondent increased petitioner’s 1991 Federal income tax
liability by $42,057. In a notice of deficiency dated September
9, 1996, respondent determined that petitioner is liable for a
section 6662(a) accuracy-related penalty of $8,411 for 1991.9
Discussion
Respondent determined that petitioner is liable for the
accuracy-related penalty under section 6662(a) because of
negligence or disregard of rules or regulations under section
6662(b)(1) or, in the alternative, a substantial understatement
of income tax under section 6662(b)(2). Respondent’s
determination with respect to the imposition of the section
6662(a) penalty is presumed correct, and petitioner bears the
burden of proving that he is not liable for the accuracy-related
penalty under section 6662(a).10 See Rule 142(a); Welch v.
9 Respondent concedes that a portion of the partnership
adjustment is not subject to the accuracy-related penalty.
10 Sec. 7491 is not applicable in this case because the
examination of petitioner’s 1991 return commenced before July 22,
1998, the effective date of sec. 7491.
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