- 14 -
unpaid liability. Again, giving petitioner the benefit of the
doubt, four of the factors weigh against granting relief.
The lists of factors are not exhaustive, no single factor is
determinative, and all factors should be considered and weighed
appropriately. Rev. Proc. 2000-15, sec. 4.03. Taking into
account the above-listed factors as applied to the facts in this
case, we conclude that respondent did not act arbitrarily,
capriciously, or without sound basis in fact in denying
petitioner’s request for equitable relief under section 6015(f).
Consequently, respondent’s denial is not an abuse of discretion.
C. Addition to Tax and Penalty
Respondent imposed a section 6651(a)(1) addition to tax upon
the ground that the 1998 return was not timely. Respondent also
imposed a section 6662(a) accuracy-related penalty upon the
ground that the underpayment of tax required to be shown on the
1998 return is a substantial understatement of income tax.
Respondent bears the burden of production with respect to each of
these items. See sec. 7491(c).
1. Section 6651(a)(1) Addition to Tax
Section 6651(a)(1) provides for an addition to tax in an
amount equal to 5 percent of the amount of the tax shown on the
return for the first month, plus an additional 5 percent for each
additional month or fraction of a month during which the failure
to file continues, up to a maximum of 25 percent of the tax in
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011