- 13 -
carryover. Therefore, petitioner is subject to the section
6662(a) accuracy-related penalty with respect to the portions of
the underpayment that are attributable to her overstatements of
these items.
As previously noted, the determination of the fair market
values of personal items is less than an exact science. In light
of the circumstances presented in this case, we are not persuaded
that petitioner’s overly optimistic valuation estimates of many
items of donated property constitutes “negligence” within the
meaning of section 6662(b)(1). Accordingly, petitioner is not
liable for the section 6662(a) accuracy-related penalty with
respect to the portion of the underpayment of her 2002 tax that
is attributable to her overstatement of the fair market values of
the donated property.
Reviewed and adopted as the report of the Small Tax Case
Division.
To reflect the foregoing,
Decision will be entered
under Rule 155.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Last modified: May 25, 2011