51
50 percent of the interest due on the portion of the underpayment
attributable to negligence.
Negligence is defined as the lack of due care or the failure
to do what a reasonable and ordinarily prudent person would do
under similar circumstances. Anderson v. Commissioner, 62 F.3d
1266, 1271 (10th Cir. 1995), affg. T.C. Memo. 1993-607; Norgaard
v. Commissioner, 939 F.2d 874, 880 (9th Cir. 1991), affg. in part
and revg. in part on other grounds T.C. Memo. 1989-390; Allen v.
Commissioner, 925 F.2d 348, 353 (9th Cir. 1991), affg. 92 T.C. 1
(1989); Neely v. Commissioner, 85 T.C. 934, 947 (1985).
Petitioners bear the burden of proving that respondent's
determination of negligence is erroneous. Rule 142(a); Allen v.
Commissioner, supra at 353; Bixby v. Commissioner, 58 T.C. 757,
791-792 (1972).
The taxpayer can avoid liability for the addition to tax for
negligence by showing that he reasonably relied on competent
professional advice. Collins v. Commissioner, 857 F.2d 1383,
1386 (9th Cir. 1988), affg. Dister v. Commissioner, T.C. Memo.
1987-217; Weis v. Commissioner, 94 T.C. 473, 487 (1990); Freytag
v. Commissioner, 89 T.C. 849, 887-888 (1987), affd. 904 F.2d 1011
(5th Cir. 1990), affd. 501 U.S. 868 (1991). However, "Reliance
on professional advice, standing alone, is not an absolute
defense to negligence, but rather a factor to be considered."
Freytag v. Commissioner, supra at 888. To succeed in this
defense, the taxpayer must show that he supplied all necessary
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