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petitioners computed their tax based on past income history or
that it was consistent with the computation of tax for any prior
year.
Respondent appropriately voided petitioners’ 1989 extension
because petitioners failed to estimate properly their tax
liability, as required under Crocker v. Commissioner, supra.
Thus, respondent’s determination that petitioners are liable for
the section 6651(a)(1) addition to tax for 1989 will be
sustained.
Section 6653(a)(1)(A) and (B) and Section 6653(a)(1)
Respondent determined that petitioners are liable for the
section 6653(a)(1)(A) and (B) addition to tax for 1987 and the
section 6653(a)(1) addition to tax for 1988. Section
6653(a)(1)(A) and section 6653(a)(1) impose an addition to tax
equal to 5 percent of the underpayment if any part of the
underpayment is due to negligence or intentional disregard of
rules or regulations. Section 6653(a)(1)(B) imposes an addition
to tax equal to 50 percent of the interest due on the portion of
the underpayment attributable to negligence. Negligence is
defined as a lack of due care or failure to do what a reasonable
and ordinarily prudent person would do under the circumstances.
Leuhsler v. Commissioner, 963 F.2d 907, 910 (6th Cir. 1992),
affg. T.C. Memo. 1991-179; Neely v. Commissioner, 85 T.C. 934,
947-948 (1985). Petitioners bear the burden of proving that
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