Case 2:14-cv-00418-DN Document 67 Filed 01/30/17 Page 13 of 19 -14 C. BME Had No Reasonable Basis for Its Return Position. As the Court has noted, a taxpayer is not liable for an accuracy-related penalty under IRC § 6662(b)(1) if it had a “reasonable basis” for its return position. Treas. Reg.

Pursuant to that decision, the United States Tax Court found that Mrs. Bedford owed the following amounts for tax years 1999 through 2001: Tax Year Amount Type of Deficiency 1999 $4,089.00 Income tax due $817.80 Penalty under I.R.C. § 6662(a) 2000 $3,000.00 Income tax due $1,000.00 Penalty under I.R.C. § 6662(a) 2001 $7,425.00 Income tax due $1,264.00 Penalty under I.R.C. § 6662(a) See Morris Decl. ¶ 17, Morris Decl.

To justify a counterclaim for penalties, the United States suggests that the ultimate individual taxpayers should be responsible for payment of penalties in addition to the taxes they have already paid. “In addition to being liable for their share of the $11 million of grants that flow through to them as income, Uniquest partners are also liable for an addition to Case 1:15-cv-00638-EAW-LGF Document 41-5 Filed 03/21/17 Page 12 of 18 5 tax under 26 U.S.C. § 6662(b) of twenty percent of the amount of the underpayment of tax.” Def.

Moreover, numerous courts besides the Tigers Eye court have held that the applicability of intent-based penalties such as the negligence penalty is determined in a partnership 148 There is no question that the negligence penalty, like the fraud penalty, is also an intent-based penalty, as it can be imposed for the “careless, reckless, or intentional disregard” of rules and regulations. 26 U.S.C. § 6662(c) Case 2:14-cv-00915-BSJ Document 54 Filed 09/30/16 Page 45 of 63 46 proceeding by looking to the partnership’s intent and conduct. See, e.g., Jade Trading, LLC ex rel.

Case 2:15-cv-03789-CDJ Document 45-2 Filed 09/06/16 Page 13 of 13 1 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA UNITED STATES OF AMERICA, ) ) Plaintiff, ) ) v. ) Case No. 2:15-cv-03789-CDJ ) JENNIFER KOMLO, ) ) Defendant. ) __________________________________________) ORDER In consideration of the United States’ motion for partial summary judgment, as well as its memorandum in support, and any additional briefs on the topics, and for good cause shown, it is hereby ORDERED that the United States motion for summary judgment is GRANTED; and it is further ORDERED that this Court finds the United States is entitled to a judgment against Jennifer Komlo in the amount of $38,208.00 for her 1998 income tax liabilities; $7,641.60 for 1998 penalties under 26 U.S.C. § 6662; $21,339.00 for her 2008 income tax liabilities; $4,268 for 2008 penalties under 26 U.S.C. § 6662; $13,529.00 for her 2010 income tax liabilities; $46.59 for 2010 penalties under 26 U.S.C. § 6651; plus interest, until paid in full, as provided by 28 U.S.C. § 1961(c) and 26 U.S.C. §§ 6601 and 6621.

And a taxpayer’s disregard of applicable revenue rulings can result in the imposition of penalties. See I.R.C. § 6662; 26 C.F.R. § 1.6662-3(b)(2). For these reasons, the Government believes that revenue rulings have the “force of law” within the meaning of Mead, and Chevron deference is therefore required.

18-2, ¶ 3). The Form 3552 also reflected that Plaintiff Lopez had been assessed an “Accuracy-Related Penalty” pursuant to 26 U.S.C. §6662, in the amount of $71,332.60. Lopez I, (Doc.

............................................................................................................. 1, 4 20 U.S.C. § 1085 ............................................................................................................................ 6 20 U.S.C. § 1088 ........................................................................................................................ 1, 4 20 U.S.C. § 1089 .......................................................................................................................... 27 20 U.S.C. § 1098a ........................................................................................................................ 27 26 U.S.C. § 6017 .......................................................................................................................... 10 26 U.S.C. § 6652 .......................................................................................................................... 10 26 U.S.C. § 6662 .......................................................................................................................... 10 26 U.S.C. § 7201 .......................................................................................................................... 10 Regulations Notice of Proposed Rulemaking (“NPRM”), 79 Fed. Reg. 16426 (Mar. 25, 2014) ...................... 5 Final regulations (“2014 Final Rule”), 79 Fed. Reg.

A delegate of the Secretary of the Treasury made assessments against Olson for income tax, penalties, and interest for the 2007 tax year as follows: Tax Year Assessment Date Tax Interest Penalties 2007 2/08/2010 $5,470.00 $595.52 $1,094.00 **** -- 7/19/2010 -- -- $246.15 ** -- 10/31/2011 -- -- $820.50 ** ** failure to pay penalty - IRC § 6651(a)(2) **** accuracy related penalty - IRC § 6662 (Id. ¶ 5, Ex. A-8.) Subsequently, a delegate of the Secretary of the Treasury gave notice to Olson of the assessments described above and made demand for payment.

L. No. 111-152, 124 Stat. 1029 (2010) ..................................................... 19 Internal Revenue Code, 26 U.S.C. §§ 1-9834, I.R.C. § 316(a) .................................................................................................... 16 I.R.C. § 901(k)(1)(A) .................................................................................... 15, 16 I.R.C. § 6532(a)(1) ............................................................................................... 6 I.R.C. § 6662 ........................................................................................................ 5 Securities Investor Protection Act of 1970, 15 U.S.C. § 78aaa ................................................................................................ 4 28 U.S.C. § 157 ............................................................................................................... 7 28 U.S.C. § 157(b) ........................................................................................................ 22 28 U.S.C. § 157(b)(2) .................................................................................................... 21 28 U.S.C. § 157(c) ......................................................................................................... 22 28 U.S.C. § 157(d) .................................................................................................passim 28 U.S.C. § 1334(a) ......................................................