Robert W. and Jennifer J. Fritz - Page 9

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          Additions to Tax for Negligence                                             

               Respondent also determined that petitioners are liable for             
          additions to tax under section 6653(a)(1) and (2) for the 1985              
          taxable year, and under section 6653(a)(1)(A) and (B) for the               
          1987 taxable year.5                                                         
               This Court has defined negligence as a lack of due care or             
          the failure to do what a reasonable and ordinarily prudent person           
          would do under the circumstances.  McGee v. Commissioner, 979               
          F.2d 66, 71 (5th Cir. 1992), affg. T.C. Memo. 1991-510; Neely v.            
          Commissioner, 85 T.C. 934, 947 (1985).  Respondent made numerous            
          adjustments, in addition to those sustained here, to petitioner's           
          income and deductions for 1985 and 1987.  Petitioners have not              
          presented any evidence either at trial or on brief to convince us           
          that their omissions from gross income and excess deductions were           
          not the result of negligence.  Therefore, we sustain respondent's           
          determination.                                                              

          Additions to Tax for Substantial Understatement of Income Tax               





          5Sec. 6653 was amended by sec. 1503(a) of the Tax Reform Act                
          of 1986, Pub. L. 99-514, 100 Stat. 2085, 2742, effective for                
          returns the due date of which is after Dec. 31, 1986.  As                   
          amended, the 5-percent addition to tax for negligence or                    
          disregard of rules or regulations and the 50-percent interest               
          provision formerly contained in sec. 6653(a)(1) and (2) are                 
          contained in sec. 6653(a)(1)(A) and (B), respectively.                      




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