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Issue 2. Negligence
Section 6653(a)(1) provides for an addition to tax equal to
5 percent of any underpayment if any part of the underpayment is
due to negligence or intentional disregard of rules and
regulations. Section 6653(a)(2) provides for an addition to tax
of 50 percent of the interest on that portion of the
underpayment attributable to negligence.
Negligence is defined as a lack of due care or the failure
to act as a reasonable person would act under similar
circumstances. Chamberlain v. Commissioner, 66 F.3d 729, 732
(5th Cir. 1995), affg. in part and revg. in part T.C. Memo. 1994-
228; Heasley v. Commissioner, 902 F.2d 380, 383 (5th Cir. 1990),
revg. T.C. Memo. 1988-408; Neely v. Commissioner, 85 T.C. 934,
947 (1985). Petitioner bears the burden of proving that no part
of the underpayment for the year at issue is due to negligence or
intentional disregard of rules and regulations. Rule 142(a);
Bixby v. Commissioner, 58 T.C. 757 (1972). The addition to tax
for negligence under section 6653 is correctly assessed in cases
where claimed deductions are not supported by the facts.
Sandvall v. Commissioner, 898 F.2d 455 (5th Cir. 1990), affg.
T.C. Memo. 1989-56 and T.C. Memo. 1989-189; Marcello v.
Commissioner, 380 F.2d 499 (5th Cir. 1967), affg. in part and
remanding in part 43 T.C. 168 (1964).
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Last modified: May 25, 2011