Benjamin O. & Linda L. Agbaniyaka - Page 20




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          apply to any portion of an underpayment if it is shown that there           
          was reasonable cause for, and that the taxpayer acted in good               
          faith with respect to, such portion.  Sec. 6664(c)(1).  The                 
          determination of whether the taxpayer acted with reasonable cause           
          and in good faith depends on the pertinent facts and circum-                
          stances, including the taxpayer’s efforts to assess such tax-               
          payer’s proper tax liability, the knowledge and experience of the           
          taxpayer, and the reliance on the advice of a professional, such            
          as an accountant.  Sec. 1.6664-4(b)(1), Income Tax Regs.                    
               Respondent has the burden of production under section                  
          7491(c) with respect to the accuracy-related penalty under                  
          section 6662.  To meet that burden, respondent must come forward            
          with sufficient evidence indicating that it is appropriate to               
          impose that penalty.  Higbee v. Commissioner, 116 T.C. 438, 446             
          (2001).  Although respondent bears the burden of production with            
          respect to the accuracy-related penalty that respondent deter-              
          mined for each of petitioners’ taxable years 2001 through 2004,             
          respondent “need not introduce evidence regarding reasonable                
          cause * * * or similar provisions. * * * the taxpayer bears the             
          burden of proof with regard to those issues.”  Id.                          
               With respect to the accuracy-related penalty under section             
          6662(a) that respondent determined for each of petitioners’                 
          taxable years 2001 through 2004, Mr. Agbaniyaka testified that              
          petitioners maintained documents to support the amounts at issue.           







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