Martin H. Droz - Page 15

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          appealed our decision to the U.S. Court of Appeals for the Ninth            
          Circuit, and that appeal was pending at the time of the trial               
          herein.  After the present case was submitted, the Court of                 
          Appeals rendered its decision upholding the constitutionality of            
          section 1402(g)(1), affirming this Court's decision, and holding            
          petitioner liable for self-employment tax for 1988.  Droz v.                
          Commissioner, 48 F.3d 1120 (9th Cir. 1995), affg. an Oral Opinion           
          of this Court, cert. denied, ___ U.S. ___, 64 U.S.L.W. 3167 (Jan.           
          8, 1996).                                                                   
               On the record before us, we sustain respondent's determina-            
          tion that petitioner is liable for 1991 for self-employment tax.            
          Droz v. Commissioner, supra.                                                
          Accuracy-Related Penalty                                                    
               Respondent determined that petitioner is liable for 1991 for           
          the accuracy-related penalty under section 6662(a) because his              
          underpayment of tax for that year was due to negligence or                  
          disregard of rules or regulations.  For purposes of section                 
          6662(a), the term "negligence" includes any failure to make a               
          reasonable attempt to comply with the provisions of the Code,               
          failure to exercise due care, or failure to do what a reasonable            
          person would do under the circumstances.  Sec. 6662(c); Leuhsler            
          v. Commissioner, 963 F.2d 907, 910 (6th Cir. 1992), affg. T.C.              
          Memo. 1991-179; Antonides v. Commissioner, 91 T.C. 686, 699                 
          (1988), affd. 893 F.2d 656 (4th Cir. 1990).  The term "disregard"           





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