TAX COURT OPINION

Case: Robert B. Anderson
Docket Number: 1040-11L
Judge: Halpern
Opinion Type: bench
Filed: 04/12/2012
Pages: 4

UNITED STATES TAX COURT WASHINGTON, DC 20217 ROBERT B. ANDERSON, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent ) ) ). Docket No. 1040-11L. ) ) ORDE R Pursuant to Rule 152 (b), Tax Court Rules of Practice and Procedure, it is ORDERED that the Clerk of the Court shall transmit herewith to petitioner and to respondent a copy of the pages of the transcript of the trial in the above case before Judge James S. Halpern at Los Angeles, California on March 1, 2012, containing his oral findings of fact and opinion rendered at the conclusion of trial. In accordance with the oral findings of fact and opinion, an appropriate order and decision will be entered for respondent. (Signed) James S. Halpern Judge Dated: Washington, D.C. April 12, 2012 SERVED APR 17 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 Bench Opinion.by Judge James S. Halpern Robert B. Anderson v. Commissioner Docket No. 1040-11L March 1, 2012 THE COURT: THE COURT HAS DECIDED TO RENDER ORAL FINDINGS OF FACT AND OPINION IN THIS CASE, AND THE FOLLOWING REPRESENTS THE COURT'S ORAL FINDINGS OF FACT AND OPINION. THE ORAL FINDINGS OF FACT AND OPINION SHALL NOT BE RELIED UPON AS PRECEDENT IN ANY OTHER CASE. This Bench Opinion is made pursuant to the authority granted by Section 7459(b) of the Internal Revenue Code of 1986, as amended, and Rule 152 of the Tax Court Rules of Practice and Procedure. Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure. - Petitioner resided in California at the time he filed the petition and the amended petition. This case is before the Court pursuant to an amended petition filed under Section 6330(d) for review of a determination made by Respondent's o_ffice of Appeals (Appeals). The parties have stipulated certain facts. The stipulation of facts with attached exhibits is Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 incorporated herein by this reference. We have granted Respondent's motion to dismiss as to mootness and to strike with respect to 2006 and we have granted in part and denied in part his motion for partial 4 summary judgment. See/gT.C. Memo. 2012- 6. What Ander.sen mComm&kner y j(cid:16)040 remains for decision is Petitioner's challenge to the Section 6702 penalty imposed for 2007. Petitioner argues that the penalty should be reduced pursuant to Section 6702(d), which provides that the Secretary may reduce the penalty "if the Secretary determines that such reduction would promote compliance with and administration of the Federal tax laws." Reduction of the penalty is discretionary depending on the Secretary's determination that the reduction would promote compliance and tax administration. We shall make that determination here because, as set forth in T.C. Memo. 2012-46, Appeals did not make a proper determination with respect to that issue. Petitioner has apparently corrected the frivolous return for 2007 that gave rise to the penalty. That being said, and assuming that Petitioner intends to be compliant with his obligation to file correct tax returns, we do not see how reducing the penalty would promote compliance or tax Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 5 administration. We sustain imposition of the penalty. We shall enter an order and decision ordering and deciding that Respondent may proceed with collection for 2007. This concludes the Court's oral findings of fact and opinion in this case. (Whereupon, at 10:18 a.m., the bench opinion in the above-entitled matter was concluded.) // // // // // // // // // // // // // // // // // Heritage Reporting Corporation (202) 628-4888