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and concessions obviates the negligence addition for 1983, we
need only address section 6653(a) for the year 1984.
For the purpose of section 6653(a), negligence has been
defined as the failure to do what a reasonable and ordinarily
prudent person would do under the circumstances. Emmons v.
Commissioner, 92 T.C. 342, 349 (1989), affd. 898 F.2d 50 (5th
Cir. 1990); Neely v. Commissioner, 85 T.C. 934, 947 (1985).
Petitioner has the burden of proving by a preponderance of the
evidence that he did not act negligently or with intentional
disregard of rules and regulations. Rule 142(a); Luman v.
Commissioner, 79 T.C. 846, 860-861 (1982); Bixby v. Commissioner,
58 T.C. 757, 791 (1972).
The evidence supports the conclusions that petitioner acted
negligently and intentionally disregarded the rules and
regulations for 1984. Petitioner failed to submit any evidence
to show that he had any reasonable basis for the substantial
omissions from his income tax return for 1984. Petitioner has
not carried his burden of proving that he acted reasonably or
prudently with respect to his income tax obligations for 1984.
Therefore, we hold that petitioner is liable for the
additions to tax under section 6653(a)(1) and (2) for negligence
or intentional disregard of rules and regulations.
Issue 5: Section 6661 Additions--Substantial Understatement
Respondent also determined additions to tax for substantial
understatement of income tax under section 6661. For the years
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