Bennett Geiger - Page 17

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          difference between $159,008 and zero exceeds both 10 percent of             
          $159,008, or $1,590, and $5,000.  Accordingly, the understatement           
          was substantial.                                                            
               Section 6664(c)(1) provides that the accuracy-related                  
          penalty shall not apply to any portion of an underpayment if it             
          is shown that there was reasonable cause for the taxpayer’s                 
          position with respect to that portion and that the taxpayer acted           
          in good faith with respect to that portion.  The determination of           
          whether a taxpayer acted with reasonable cause and in good faith            
          within the meaning of section 6664(c)(1) is made on a case-by-              
          case basis, taking into account all of the pertinent facts and              
          circumstances.  Sec. 1.6664-4(b)(1), Income Tax Regs.  The most             
          important factor is the extent of the taxpayer’s effort to assess           
          his proper tax liability for the year.  Id.  “Circumstances that            
          may indicate reasonable cause and good faith include an honest              
          misunderstanding of fact or law that is reasonable in light of              
          all of the facts and circumstances, including the experience,               
          knowledge, and education of the taxpayer.”  Id.                             
               Petitioner does not qualify for section 6664(c)(1) relief.             
          Under the circumstances, petitioner’s failure to consult an                 
          accountant or other tax professional was unreasonable.  See Marr            
          v. Commissioner, T.C. Memo. 1995-250 (finding taxpayer negligent            
          for claiming theft loss without consulting tax professional).               
          Petitioner claimed a very large deduction that resulted in                  

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