Jorge O. and Clelia E. Svoboda - Page 16

                                       - 16 -                                         
          respondent has satisfied his burden of production, and                      
          petitioners bear the burden of establishing the applicability of            
          the reasonable cause exception.                                             
               A penalty under section 6662(a) will not be imposed with               
          respect to any portion of the underpayment as to which the                  
          taxpayer acted with reasonable cause and in good faith.  Sec.               
          6664(c)(1).  The decision as to whether a taxpayer acted with               
          reasonable cause and in good faith is made by taking into account           
          all the pertinent facts and circumstances.  Sec. 1.6664-4(b)(1),            
          Income Tax Regs.                                                            
               The regulations interpreting section 6664(c)(1) provide:               
               The determination of whether a taxpayer acted with                     
               reasonable cause and in good faith is made on a case-by-case           
               basis, taking into account all pertinent facts and                     
               circumstances. * * * Generally, the most important factor is           
               the extent of the taxpayer's effort to assess the taxpayer's           
               proper tax liability.  Circumstances that may indicate                 
               reasonable cause and good faith include an honest                      
               misunderstanding of fact or law that is reasonable in light            
               of all the facts and circumstances, including the                      
               experience, knowledge and education of the taxpayer. * * *             
               [Sec. 1.6664-4(b)(1), Income Tax Regs.]                                
               Petitioner emigrated to the United States more than 40 years           
          ago and earned a master's degree in business administration after           
          doing so.  He was employed as an electrical engineer and manager            
          by Fluor Corporation for many years and has taught applied                  
          economics.                                                                  









Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011