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v. Commissioner, 886 F.2d 1237, 1238 (9th Cir. 1989), affg. 89
T.C. 1063 (1987); Wichita Terminal Elevator Co. v. Commissioner,
6 T.C. 1158, 1165 (1946), affd. 162 F.2d 513 (10th Cir. 1947).
We find that petitioner omitted the automobile allowance, in the
amount of $6,500, from the petitioners’ 1990 return, and we
sustain respondent’s determination of a deficiency to the extent
that it relates to such omission.
IV. Negligence
Section 6662 provides for an accuracy-related penalty in the
amount of 20 percent of the portion of any underpayment
attributable to, among other things, negligence or intentional
disregard of rules or regulations. Respondent determined a
section 6662 penalty against petitioners for their negligence in
omitting from gross income the nonemployee compensation discussed
above. Negligence has been defined as the failure to exercise
the due care of a reasonable and ordinarily prudent person under
like circumstances. Neely v. Commissioner, 85 T.C. 934, 947
(1985). In the petition, petitioners assign error to
respondent’s determination of a section 6662 penalty. However,
petitioners do not aver any specific facts in support of their
assignment of error. On brief, petitioners propose no findings
of fact specifically relating to the penalty, nor do they set
forth any arguments with regard thereto. We assume that, in
defense to respondent’s determination of a penalty, petitioners
rely exclusively on the assumption that we shall determine no
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