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In the notice of deficiency, respondent determined that
petitioners were liable for additions to tax for negligence under
section 6653(a)(1) and (2), and for additions to tax for
valuation overstatement under section 6659.
Section 6653(a)(1) provides for an addition to tax equal to
5 percent of any underpayment if any part of the underpayment is
due to negligence or intentional disregard of rules or
regulations. Section 6653(a)(2) provides for an addition to tax
equal to 50 percent of the interest payable on the deficiency
with respect to the portion of the underpayment which is
attributable to negligence or intentional disregard of rules or
regulations.
Negligence is defined as the lack of due care or the failure
to do what a reasonable and ordinarily prudent person would do
under the circumstances. Neely v. Commissioner, 85 T.C. 934, 947
(1985). Petitioners bear the burden to prove that respondent's
negligence determinations are erroneous. Rule 142(a); Bixby v.
Commissioner, 58 T.C. 757, 791 (1972).
Under certain circumstances, reliance on the advice of a
competent professional adviser may overcome respondent's finding
of negligence. United States v. Boyle, 469 U.S. 241 (1985);
Freytag v. Commissioner, 89 T.C. 849, 888 (1987), affd. 904 F.2d
1011 (5th Cir. 1990), affd. 501 U.S. 868 (1991). Reliance on
professional advice, standing alone, is not an absolute defense
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