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where any part of the underpayment was due to negligence or
disregard of rules or regulations. Section 6653(a)(1)(B) imposed
an addition to tax in an amount equal to 50 percent of the
interest payable under section 6601 with respect to the portion
of the underpayment which was attributable to negligence.
Negligence within the meaning of section 6653(a) has been 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) (citing Marcello
v. Commissioner, 380 F.2d 499, 506 (5th Cir. 1967), affg. in part
and remanding in part 43 T.C. 168 (1964)). Respondent’s
determination is presumed correct, and petitioner bears the
burden of proving that he was not negligent. Rule 142(a);
Stovall v. Commissioner, 762 F.2d 891, 895 (11th Cir. 1985),
affg. T.C. Memo. 1983-450; Bixby v. Commissioner, 58 T.C. 757,
791-792 (1972).
Petitioner claims that he provided his accountant, Mr.
Norris, with all necessary information to prepare an accurate tax
return and that Mr. Norris mistakenly omitted the $4 million of
taxable income from the return. Petitioner contends that he
reviewed the return before signing and filing it, but he did not
notice any errors. Respondent argues that petitioner knew of the
omission of the $4 million of taxable income at the time he filed
the original return for 1986. Respondent claims that even if
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