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Negligence under section 6653(a) is defined as a "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) (quoting Marcello v.
Commissioner, 380 F.2d 499, 506 (5th Cir. 1967), affg. in part
and remanding in part 43 T.C. 168 (1964)). The Commissioner's
determination that the taxpayer's underpayment was due to
negligence is presumed correct, and the taxpayer has the burden
of proving that the determination is erroneous. Rule 142(a);
Bixby v. Commissioner, 58 T.C. 757 (1972). Thus, petitioner must
show that she acted reasonably and prudently and exercised due
care in reporting her taxes. Neely v. Commissioner, supra.
Here, petitioner has failed to present any evidence that she
was not negligent in claiming the 1987 and 1988 NOL's.
Accordingly, she has failed to meet her burden of proof;
therefore, we affirm respondent's determination on this issue.
Issue 4. Addition to Tax--Substantial Understatement
Respondent determined that petitioner was liable for
additions to tax pursuant to section 6661 for tax years 1987 and
1988.
Section 6661 provides that if there is a substantial
understatement of income tax, there shall be added to the tax an
amount equal to 25 percent of the amount of any underpayment
attributable to such understatement. Sec. 6661(a). The taxpayer
bears the burden of proving that the Commissioner's determination
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