Hansen

FOR PUBLICATION

UNITED STATES COURT OF APPEALS

FOR THE NINTH CIRCUIT

GARY D. HANSEN; JOHNEAN F. 

HANSEN,

No. 05-70658 Petitioners-Appellants, v.  Tax Ct. No. 25191-

COMMISSIONER OF INTERNAL

OPINION

REVENUE,

Respondent-Appellee.  Appeal from a Decision of the United States Tax Court

Argued and Submitted September 15, 2006—Seattle, Washington

Filed December 18, 2006

Before: Mary M. Schroeder, Chief Circuit Judge, Richard C. Tallman and Carlos T. Bea, Circuit Judges.

Opinion by Judge Bea

19489 19492 HANSEN v. CIR

COUNSEL

Terri A. Merriam, Pearson Merriam, P.C., Seattle, Washing- ton, for the petitioner-appellants. HANSEN v. CIR 19493 Eileen J. O’Connor, Assistant Attorney General, Richard Far- ber, Anthony T. Sheehan, Attorneys, Tax Division, U.S. Department of Justice, Washington D.C., for the respondent- appellee.

OPINION

BEA, Circuit Judge:

Gary and Johnean Hansen (“Hansens”) appeal the judg- ment of the Tax Court in Hansen v. Commissioner, T.C.M. (RIA) 2004-269 (2004), upholding the Commissioner of Internal Revenue’s (“Commissioner”) imposition of a negli- gence penalty pursuant to…