Debo Joel Ogungbade - Page 8

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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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