-9-
an additional extension until October 15, 1998, to file that
return, and they did so in a timely fashion. See sec. 7502.
Respondent has no record of the additional extension, and
petitioners’ evidence on the point is less than compelling.
Respondent’s imposition of the section 6651(a)(1) addition to tax
is sustained, but in an amount that takes into account the August
15, 1998, extended due date of petitioners’ 1997 return.
Respondent also imposed a section 6662(a) penalty on the
underpayment of tax required to be shown on petitioners’ 1997
return. In addition to other reasons, if any portion of an
underpayment of tax required to be shown on a taxpayer’s return
is due to negligence, then the section 6662(a) penalty is
applicable. The many errors and irregularities admitted to by
petitioners with respect to their 1997 return make it clear that
the imposition of the section 6662(a) penalty is appropriate with
respect to the entire underpayment of tax, which in this case is
computed in the same manner as the deficiency. See sec. 6664(a).
To reflect the foregoing,
Decision will be entered
under Rule 155.
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Last modified: November 10, 2007