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and the amount actually shown on the return. Sec. 6661(b)(2);
Tweeddale v. Commissioner, 92 T.C. 501 (1989); Woods v.
Commissioner, 91 T.C. 88 (1988). The section 6661 addition to
tax is not applicable, however, if there was substantial
authority for the taxpayer's treatment of the items in issue or
if relevant facts relating to the tax treatment of those items
were disclosed on the return. Sec. 6661(b)(2)(B)(i) and (ii).
Neither exception applies here. If the recomputed
deficiency under Rule 155 satisfies the statutory percentage or
amount, petitioners will be liable for that addition to tax.
Issue 5. Addition to Tax--Negligence
In her notice of deficiency, respondent determined that
petitioners were liable for additions to tax under section
6653(a) for negligence.
Section 6653(a)(1) provides for an addition to tax of 5
percent of the 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
of 50 percent of the interest payable under section 6601 with
respect to the portion of the underpayment which is attributable
to negligence or intentional disregard of rules or regulations.
Negligence under section 6653(a) is 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
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