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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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