Estate of Sylvia P. Goldman, Deceased, Marsha Goldberg and Linda Tanenbaum, Co-executrices - Page 18

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            underpayment of tax to which the section applies.  Sec. 6662(a).                          
            The section applies to, among other enumerated items, the portion                         
            of an underpayment attributable to "negligence or disregard of                            
            rules or regulations."  Sec. 6662(b)(1).                                                  
                  Negligence is defined as the "lack of due care or failure to                        
            do what a reasonable and ordinarily prudent person would do under                         
            the circumstances."  Neely v. Commissioner, 85 T.C. 934, 947                              
            (1985) (construing the predecessor to the current section 6662).                          
            It includes the failure to make a reasonable attempt to comply                            
            with the Internal Revenue Code, as well as a failure by the                               
            taxpayer to keep adequate books and records or substantiate items                         
            properly.  Sec. 6662(c); sec. 1.6662-3(b)(1), Income Tax Regs.                            
            Petitioner bears the burden of proving it was not negligent.                              
            Rule 142(a); Goldman v. Commissioner, 39 F.3d 402, 406 (2d Cir.                           
            1994), affg. T.C. Memo. 1993-480.                                                         
                  Petitioner failed to include in the gross estate the value                          
            of six bank accounts.  It also undervalued an account by                                  
            $106,941.08.  Petitioner contends that "in an estate exceeding                            
            $3.1 million, such an inadvertent omission ($388,000) * * *                               
            do[es] not justify imposition of the addition to tax."  Section                           
            6662, however, does not have a de minimis exception.  Therefore,                          
            we reject this argument.                                                                  
                  Marsha testified that she relied on her accountant to                               
            prepare the return.  Although a taxpayer is not liable for the                            
            negligence penalty if reasonable cause is established, a mere                             

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