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equal to 20 percent of the portion of any underpayment of tax
that is due to negligence. Under section 6662(c), negligence is
any failure to make a reasonable attempt to comply with the
provisions of the Code.
Based on petitioners' amended returns filed after the notice
of deficiency was issued and immediately before trial, wherein
they adjusted the amount of nearly every item of expense claimed
on their original returns, and based on petitioners' failure to
provide credible substantiation or authority for any of the items
at issue in this case, we find that petitioners are liable for
the penalty under section 6662(b)(1) for 1990. Respondent is
sustained on this issue.
At trial, petitioner made an oral motion for discovery
requesting copies of the revenue agent's workpapers resulting
from the administrative examination of his 1988 and 1989 Federal
income tax returns. Petitioner also sought an explanation as to
why his returns were selected for examination. Under Rule
70(b)(1), information sought through discovery may concern any
matter not privileged and which is relevant to the subject matter
involved in the pending case. However, discovery "shall be
completed, unless otherwise authorized by the Court, no later
than 45 days prior to the date set for call of the case from a
trial calendar." Rule 70(a)(2). This case was first called for
trial on May 12, 1994. Petitioner did not move for discovery
until the case was recalled for trial at a special session held
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