- 2 - Respondent determined for 2001 a deficiency in petitioner’s Federal income tax of $12,406 and a section 6662(a) accuracy- related penalty of $2,481.20. Petitioner has conceded that she is liable for the deficiency. The only issue remaining for decision is whether petitioner is liable for a section 6662(a) accuracy-related penalty. Background At the time the petition in this case was filed, petitioner resided in Las Vegas, Nevada. Petitioner filed a Form 1040, U.S. Individual Income Tax Return, for 2001, which was prepared by a certified public accountant (C.P.A.). On February 2, 2005, respondent issued to petitioner a statutory notice of deficiency for 2001. Respondent determined that petitioner was liable for an accuracy-related penalty under section 6662(a), because there was a substantial understatement of income tax. Discussion Section 7491(c) imposes the burden of production in any court proceeding on the Commissioner with respect to the liability of any individual for penalties and additions to tax. Higbee v. Commissioner, 116 T.C. 438, 446 (2001); Trowbridge v. Commissioner, T.C. Memo. 2003-164, affd. 378 F.3d 432 (5th Cir. 2004). In order to meet the burden of production under section 7941(c), the Commissioner must come forward with sufficientPage: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011