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the underpayment of tax if any part of the underpayment is due to
negligence or intentional disregard of the rules or regulations.
Section 6653(a)(2) for 1981, 1983, and 1984 imposes an addition
to tax in the amount of 50 percent of the interest due on the
portion of the underpayment attributable to negligence.
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, 937
(1985). Respondent's determination that petitioners were
negligent is presumed correct, and petitioners bear the burden of
proving that they were not negligent. Rule 142(a).
In order to prevail on the negligence issue, petitioners
must prove that their actions in connection with the GD&L
container investment were reasonable in light of their experience
and the nature of the investment. See Henry Schwartz Corp. v.
Commissioner, 60 T.C. 728, 740 (1973). Within this framework,
petitioners may prevail if they reasonably relied on competent
professional advice. Freytag v. Commissioner, 89 T.C. 849, 888
(1987), affd. 904 F.2d 1011 (5th Cir. 1990), affd. 501 U.S. 868
(1991). When considering the negligence addition to tax we
evaluate the particular facts of each case, judging the relative
sophistication of the taxpayers, as well as the manner in which
they approached their investment. Maminga v. Commissioner, T.C.
Memo. 1995-361.
Based on this record, we conclude that petitioners' reliance
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