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the tax due, or the maximum 25 percent of the tax due, unless
petitioners had reasonable cause for the delay.
Petitioners bear the burden of proving that the delay was
due to reasonable cause and not willful neglect. Rule 142(a);
Welch v. Helvering, 290 U.S. 111 (1933). Petitioners presented
no evidence regarding the reasons for their delay in filing (or
failure to file) their returns. Petitioners have not met their
burden of proving that the delay was due to reasonable cause and
not willful neglect. Therefore, we hold for respondent on this
issue.
(b) Section 6662(b)(1)--Jerome J. and Joanne L. Mancuso
Section 6662(b)(1) provides that, if any part of any
underpayment of income tax is due to negligence or disregard of
the rules or regulations, an accuracy-related penalty equal to 20
percent of the underpayment is added to the tax. Respondent's
determination is presumed correct, and the burden is on
petitioners to prove that they were not negligent. Accardo v.
Commissioner, 942 F.2d 444, 452 (7th Cir. 1991), affg. 94 T.C. 96
(1990). The Mancusos presented no evidence on this issue, nor
did they argue this issue in either their opening or reply
briefs.
Negligence has been defined as a "lack of due care or
failure to do what a reasonable and ordinarily prudent person
would do under the circumstances." Id. (citing Marcello v.
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