Swart

MEMORANDUM OPINION

This is an action for refund of a $100.00 penalty which was imposed upon plaintiff by the Internal Revenue Service (“I.R.S.”), for negligent disregard of I.R.S. rules and regulations, in violation of 26 U.S.C. § 6694 . Federal jurisdiction is properly in voked under 28 U.S.C. § 1346 (a)(1). Discovery is complete and defendant now moves for summary judgment. Rule 56(b), Fed.R.Civ.P. After consideration of the written record, as well as the oral arguments of counsel, I find that there are no controverted issues of material fact and that defendant is entitled to summary judgment as a matter of law.

For purposes of this motion, defendant has accepted and the Court accepts as true plaintiffs version of the facts relevant to this dispute. Chester A. Swart is a certified public accountant who regularly prepares income tax returns as part of his business. In 1978, Swart was asked to prepare the 1977 United States Individual Income Tax return for Michael and Maria Tracy (“the Tracy return”). In the course of an interview with the Tracys, Swart learned that they had paid $2,890.00 to another individual as the result of an automobile accident. Swart included the…