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V. Whether the Penalties and Interest Assessed Against
Petitioner Were Excessive
Petitioner, in his brief, makes a terse reference to the
fact that the interest and penalties are excessive. In his
November 19, 2004, facsimile to Appeals Officer Grantham,
petitioner indicated that the tax year was then 13 years old and
that the income tax liability was only 25 percent of the total,
whereas the penalties and interest represented 75 percent of the
total. He also bemoans the fact that the original 25-percent
addition to tax and 20-percent penalty assessed under sections
6651(a)(1) and 6662, respectively, continue to increase in that
they are interest sensitive. Petitioner contends that the 25
percent and 20 percent amounts set forth in the respective
statutes are intended to be limitations on the maximum amount of
penalty and that the increased amounts are “excessive”.
As already discussed, petitioner was not entitled to raise
the underlying merits of the tax and penalties for 1991 because
he received a statutory notice of deficiency and litigated the
merits of same. See sec. 6330(c)(2)(B). Petitioner has not
shown that the amount of tax, penalties, or interest are
incorrectly computed.9 Instead, he broadly claims they are
9 It is clear that the addition to tax and penalty were
assessed in amounts that coincided with the dollar amounts
contained in our decision in the deficiency proceeding.
Petitioner is barred from contesting that assessment under the
principle of res judicata as well as sec. 6330(c)(2)(B).
(continued...)
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