- NEXTRECORD -
had already plea bargained and was merely awaiting the imposition
of his sentence by the District Court.
Finally, we note that the return for 1990 filed by
petitioners in June 1991 was in no way incriminatory of
petitioner regarding the sale of marijuana. Indeed, petitioners
did not report any income from the sale of marijuana on that
return. We therefore fail to appreciate why there was any need
to delay filing the 1990 return and, a fortiori, why an automatic
extension of time to file could not have been filed. In our
view, petitioners' return for 1990 makes petitioner's contention
all the more suspect.
In view of the foregoing, we conclude that petitioners have
failed to carry their burden of proof on this issue. We hold,
therefore, that they are liable for the addition to tax under
section 6651(a)(1).
Accuracy-related Penalty Under Section 6662(a)
Finally, we turn now to the accuracy-related penalty for
negligence or intentional disregard of rules or regulations.
Section 6662(a) imposes a penalty on the underpayment of tax
in an amount equal to 20 percent of the portion of underpayment
due to negligence or intentional disregard of rules or
regulations. Sec. 6662(b)(1). "Negligence" includes a failure
to make a reasonable attempt to comply with the provisions of the
internal revenue laws, specifically including the failure to
maintain adequate books and records. Sec. 6662(c); sec. 1.6662-
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