- 14 - on Johnston Island for taxable years that began after December 31, 1986. On the record before us, we find that respondent has satisfied respondent’s burden of production under section 7491(c) with respect to the accuracy-related penalty under section 6662(a) and (b)(1) that respondent determined for 2001. We turn now to petitioners’ position that they are not liable for 2001 for the accuracy-related penalty under section 6662(a). According to petitioners, they are not liable for that penalty because (1) there was substantial authority for claiming the $99,980 exclusion of 2001 wages in their 2001 joint return, (2) there was adequate disclosure of the relevant facts affecting such tax treatment of those wages, and (3) there was a reasonable basis for such tax treatment. We shall address only whether petitioners had a reasonable basis in claiming the $99,980 exclusion of 2001 wages in their 2001 joint return. If the record were to establish that peti- tioners did not have a reasonable basis in claiming that exclu- sion, such return position of petitioners would be attributable to negligence.10 Van Camp & Bennion v. United States, 251 F.3d at 866. In support of petitioners’ position that they had a reason- 10A fortiori, a return position that did not have a reason- able basis is not a position for which there was substantial authority under sec. 6662(d)(2)(B)(i) and the regulations there- under.Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011