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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 sufficient
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