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per the notice of deficiency, petitioner’s modified adjusted
gross income in 2002 was $49,184. Nevertheless, petitioner
claimed the maximum $1,500 Hope Scholarship Credit on his 2002
return. Respondent does not challenge petitioner’s eligibility
for the Hope Scholarship Credit. Rather, respondent argues that
since petitioner’s modified adjusted gross income exceeds
$41,000, the allowable credit must be reduced in accordance with
the provisions of section 25A(d). Petitioner produced no
evidence or argument to refute this. We find that respondent
properly adjusted petitioner’s claimed education credit, allowing
petitioner a credit of $273.
3. Section 6662(a)
Respondent determined that petitioner is liable for an
accuracy-related penalty under section 6662. Section 6662(a)
provides an accuracy-related penalty equal to 20 percent of the
underpayment required to be shown on a return in certain
circumstances. Those circumstances include whether the
underpayment, or a portion thereof, is: (1) Due to negligence or
disregard of rules or regulations, or (2) attributable to any
substantial understatement of income tax. Sec. 6662(b)(1) and
(2).
For purposes of section 6662, the term “negligence” includes
“any failure to make a reasonable attempt to comply with the
provisions of * * * [the Code], and the term ‘disregard’ includes
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