Smith v. Commissioner
United States Tax Court
1. Section 294 (d) (2) of the Internal Revenue Code construed and held to contain no express or implied provision for avoiding the penalty provided for therein, upon a showing by the taxpayer of reasonable cause for making a substantial underestimation of estimated tax. 2. Assuming that the statute could be so construed, held, further, under the facts, that no showing of reasonable cause was made by petitioners to avoid imposition of additions to the tax.
1Opinion of the Court
OPINION.
Johnson, Judge:
The broad question presented for decision is whether the penalties imposed under the provisions of section 294 (d) (2) for underestimations of estimated tax were properly determined. The applicable statutory provision, to the extent material, reads as follows:
SEC. 294. ADDITIONS TO THE TAX IN CASE OF NONPAYMENT.(d) Estimated Tax.—
* * * * * * *(2) Substantiae underestimate op estimated tax. — If 80 per centum of the tax (determined without regard to the credits under sections 32 and 36), in the case of individuals other than farmers * * *, exceeds the estimated tax…
2Cases cited1 opinion
- Stephan Et Ux. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1952
3Cited by67 opinions
- Abbott v. CommissionerUnited States Tax Court · 1957
- Hartley v. CommissionerUnited States Tax Court · 1954
- Anderson v. CommissionerUnited States Tax Court · 1956
- Smith v. CommissionerUnited States Tax Court · 1959
- Newsom v. CommissionerUnited States Tax Court · 1954
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