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Petitioner filed its 1988 and 1989 Forms 1120 almost 2 years
past the due dates, and petitioner filed its 1990 Form 1120 more
than 6 months late. Petitioner has not argued that it had
reasonable cause for these late filings. Given the additional
fact that the record does not otherwise establish reasonable
cause for petitioner’s late filings, we sustain respondent on
this issue.
4. Section 6653(a)
Respondent determined that petitioner was liable for an
addition to its 1988 tax under section 6653(a). Section 6653(a)
applies when any part of an underpayment of tax is due to
negligence or intentional disregard of rules or regulations.
For petitioner’s 1988 taxable year, section 6653(a)(1) imposes an
addition to tax equal to 5 percent of the entire underpayment if
any portion of the underpayment is attributable to negligence.
Negligence connotes the 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).
Given the fact that respondent determined that petitioner was
negligent, petitioner must prove her wrong. Rule 142(a); Bixby
v. Commissioner, 58 T.C. 757, 791-792 (1972).
Petitioner contends that it was unsophisticated about tax
laws, and that it relied on MBS to provide Mr. Shindel with
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