IRCCourt RulingsFeb 12, 2014related by meaning
includible in income under section 61(a)(12) and subject to tax. However, this
issue is moot because petitioners' debts were not discharged but rather extinguished, and thus petitioners' income was not from discharge of
indebtedness.
III. Accuracy-Related Penalty
Section 6662(a) imposes an accuracy-related penalty equa…
IRCCourt RulingsJan 28, 2014
…ion, and we need not analyze whether petitioners had a reasonable basis for their position.
Section 6664(c)(1) provides another method by which petitioners may avoid
the section 6662(a) penalty: no penalty shall be imposed under section 6662 with
regard to any portion of an underpayment if it can be shown that there wa…
IRCCourt RulingsOct 29, 2013
…ion 6662(a) if the taxpayer establishes
that he acted with reasonable cause and in good faith. Sec. 6664(c)(1).
Circumstances that indicate reasonable cause and good faith include reliance on
the advice of a tax professional or an honest misunderstanding of the law that is
reasonable in light of all the facts and circu…
IRCCourt RulingsJun 17, 2013
…production by demonstrating a "substantial understatement of income tax." See sec. 7491(c).
Section 6664(c)(1) provides that the accuracy-related.penalty shall not be
imposed with respect to any portion of an underpayment "if it is shown that there
was a reasonable cause for such portion and that the taxpayer acted in …
U.S. Tax Court — Marlon G. Dasent & Kendra Walcott-Dasent v. Commissioner IRCCourt RulingsDec 13, 2018related by meaning
ners are liable under section 6662(a) and
(b)(2) for an accuracy-related penalty on an underpayment due to a substantial
understatement of income tax. Section 6662(a) imposes a 20% accuracy-related penalty on any portion of
an underpayment of tax required to be shown on a return if, as provided by section
6662(b)(2), t…
IRCCourt RulingsApr 12, 2011
…cted in good faith regarding part of the underpayment, no
penalty is imposed on that part. See sec. 6664(c) (1); sec.
1.6664-4(a), Income Tax Regs. The Browns argue that they did not
report the item because they believed that Northwestern based the
Form 1099-R on the theory that a debtor has a taxable gain when a
credi…
IRCCourt RulingsJul 13, 2017
d circumstances of a
particular case. Sec. 1.6664-4(b)(1), Income Tax Regs.
As previously discussed, petitioners kept adequate records to substantiate the legal fees. Further, respondent determined and we conclude that petitioners
are entitled to deduct their legal fees as an itemized deduction (subject to
applicable l…
IRCCourt RulingsApr 10, 2008
…hat they acted with reasonable cause and in good
faith with respect to the underpayment . See sec . 6664(c)(1) ; see
also Higbee v . Commissioner , supra at 447 ; sec . 1 .6664-4(b)(1),
Income Tax Regs .
Respondent satisfied the burden of production . Petitioners'
2002 income tax return contains an understatement of ta…
IRCCourt RulingsAug 4, 2005
…ofessional tax adviser does not
necessarily demonstrate reasonable cause and good faith. See
sec. 1.6664-4(b)(1), Income Tax Regs. All facts and
circumstances must be taken into account. Sec. 1.6664-4(c)(1),
Income Tax Regs. The advice must be based upon all pertinent
facts and the applicable law. Sec. 1.6664-4(c)(1)(i…
IRCCourt RulingsMar 4, 1999related by meaning
-related penalty under
section 6662 for a substantial understatement of tax for taxable
year 1995. Section 6662(a) imposes a 20-percent penalty on the portion of an underpayment of tax attributable to, among other
things, a substantial understatement of income tax, which is
defined as an understatement that exceeds the…
IRCCourt RulingsMay 17, 2001
…payment, and (2) the taxpayer acted in good faith with
- 8 -
respect to such underpayment. See sec. 6664(c). Whether the
taxpayer acted with reasonable cause and in good faith is
determined by the relevant facts and circumstances. The most
important factor is the extent of the taxpayer’s effort to assess
the proper tax…
IRCCourt RulingsJan 9, 1985related by meaning
t that previously was not subject to the penalty. Samuels v. McCurdy, 267 U.S. 188 (1925); Chicago & Alton Railroad v. Tranbarger, 238 U.S. 67 (1915). We note that petitioner can avoid payment of the section 4975(b) tax by correcting the prohibited loans before our decision herein becomes final. Secs. 4961 and 4962.
To…
IRCCourt RulingsAug 16, 2017
…erstatement of income tax, which equals the deficiency, exceeds
$5,000, see secs. 6211, 6662(d)(2), 6664(a).
The accuracy-related penalty does not apply to any part of an underpayment
of tax if it is shown the taxpayer acted with reasonable cause and in good faith
with respect to that portion. Sec. 6664(c)(1). The dete…
T.C. Summary Opinion 2013-11 — Steven L. Jarvis, and Estate of Cynthia S. Jarvis, Deceased, Steven L. Jarvis, Special Administrator v. Commissioner IRCCourt RulingsFeb 19, 2013
…cted in good faith regarding part
of the underpayment, no penalty is imposed on that part. See sec. 6664(c)(1); sec.
- 9 -
1.6664-4(a), Income Tax Regs. An important factor for demonstrating reasonable
cause and good faith is the extent of the taxpayer's effort to determine the proper
tax liability. Sec. 1.6664-4(b)(1)…
IRCCourt RulingsJan 31, 2008related by meaning
er sec . 6662(a) .
A
- 23 -
To reflect the foregoing,
Decision will be entered for
p etitioners in l ocket No . 4467-06 .
Decision w 11 be entered for respondent as t the deficiency and
for petitioners as to the accuracyrelated penalty under sectio n
6662(a) in docket No . 7221-06 .
IRCCourt RulingsOct 25, 2012
…to be shown on the return or
$5,000. Sec. 6662(d)(1)(A); sec. 1.6662-4(b), Income Tax Regs.
Section 6664(c)(1) provides that the penalty under section 6662(a) shall not
apply to any portion of an underpayment if it is shown that there was reasonable
cause for the taxpayer's position and that the taxpayer acted in good …
IRCCourt RulingsApr 20, 2017related by meaning
ish the tax shown on the taxpayer's return for the preceding year or
demonstrate that the taxpayer filed no such return. See Wheeler, 127 T.C. at 212; Schlussel v. Commissioner, T.C. Memo. 2013-185.
Respondent met his burden of production by including with his summary
judgment motion a redacted Form 4340 showing that p…
IRCCourt RulingsApr 26, 2012
…gence.
- 14 -
because of reasonable cause, substantial authority, or the like. Secs.
6662(d)(2)(B), 6664(c); Higbee v. Commissioner, 116 T.C. at 449. Respondent
has met his burden of production for an accuracy-related penalty based on a
substantial understatement of income tax because petitioners' understatement of
inc…
IRCCourt RulingsJun 9, 2009related by meaning
oner is liable for the
accuracy-related penalty under section 6662 on the ground tha
t
'there was a substantial understatement of income tax in 2004 . Section 6662(a) and (!b)(2) authorizes the Commissioner to impose
a 20-percent penalty
.if there is a substantial understatement of
income tax . A substantial understate…
IRCCourt RulingsOct 13, 2009
…harr advised him that the
partnership income paid to his sons would not be taxable to him .
Section 6664(c)(1) providesia defense to the section 6662
penalty for any portion of an underpayment where . reasonable cause
existed and the taxpayer acted in good faith
. In determining
whether a taxpayer reasonably relied in …