Attorney-at-Law

“I SING THE PENALTY ELECTRONIC” – REDIVIVUS

In Uncategorized on 01/21/2020 at 17:06

It’s only a small-claimer, and Jemar Y. Purdie, 2020 T. C. Sum. Op. 6, filed 1/21/20,  didn’t even respond to IRS’ summary J, so maybe Judge Ruwe gave this one more than it required.

Still, it’s nice to note that the Automated Underreporting (AUR) program is exempt from Boss Hossery pursuant to Section 6751(b)(2)(B).

“The examination of petitioner’s 2016 return was processed through the AUR program.  This software program automatically determined the amount of income petitioner had omitted from his return and automatically calculated petitioner’s tax deficiency.  Based on this information the program automatically calculated the penalty under section 6662(a).  This penalty falls firmly within the exception provided under section 6751(b)(2)(B), and the Commissioner was therefore not required to obtain written supervisory approval.” 2020 T. C. Sum. Op. 6, at p. 9.

Jemar took a couple draws (hi, Judge Holmes) from retirement accounts, the trustees generated 1099-Rs, but Jemar didn’t bother to list $41K thereof on his return. IRS gets a declaration from the trustees, the 1099-Rs, and sundry other paperwork, to show Jemar got the dough. IRS bears burden of production handsomely.

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