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(sec. 6653(a)(1)(B), as to 1986) imposes an additional addition to
tax equal to 50 percent of the interest payable under section 6601
with respect to the portion of the underpayment attributable to
the negligence, etc. Petitioner has the burden of proving error
in respondent’s determination that these additions to tax should
be imposed against him. Holman v. United States, 728 F.2d 462 465
(10th Cir. 1984); Bixby v. Commissioner, 58 T.C. 757, 791-792
(1972).
Broadly speaking, for purposes of this provision, negligence
is 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, 947-948 (1985).
Petitioner is a lawyer. He testified as follows:
I have been a practicing attorney continuously since
1974 and am personally and professionally familiar with
financial operations and reports, accounting practices
and the Internal Revenue Code.
Nevertheless, he neglected to separate his activities from
the activities of the Corporations. He did not keep his records in
an organized manner. He still had his records when he filed his
tax returns for the years in issue (they had not yet been
transported to Juergens' sister's barn), and still he estimated
many of the entries on the tax returns. He overlooked substantial
amount of royalty and interest income for which Forms 1099 had
been sent. The tax returns he filed for 1983 through 1986 showed
lump sums for Schedule C expenses and various categories of
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