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underpayment of tax to which the section applies. Sec. 6662(a).
The section applies to, among other enumerated items, the portion
of an underpayment attributable to "negligence or disregard of
rules or regulations." Sec. 6662(b)(1).
Negligence is defined as the "lack of due care or failure to
do what a reasonable and ordinarily prudent person would do under
the circumstances." Neely v. Commissioner, 85 T.C. 934, 947
(1985) (construing the predecessor to the current section 6662).
It includes the failure to make a reasonable attempt to comply
with the Internal Revenue Code, as well as a failure by the
taxpayer to keep adequate books and records or substantiate items
properly. Sec. 6662(c); sec. 1.6662-3(b)(1), Income Tax Regs.
Petitioner bears the burden of proving it was not negligent.
Rule 142(a); Goldman v. Commissioner, 39 F.3d 402, 406 (2d Cir.
1994), affg. T.C. Memo. 1993-480.
Petitioner failed to include in the gross estate the value
of six bank accounts. It also undervalued an account by
$106,941.08. Petitioner contends that "in an estate exceeding
$3.1 million, such an inadvertent omission ($388,000) * * *
do[es] not justify imposition of the addition to tax." Section
6662, however, does not have a de minimis exception. Therefore,
we reject this argument.
Marsha testified that she relied on her accountant to
prepare the return. Although a taxpayer is not liable for the
negligence penalty if reasonable cause is established, a mere
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