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(2d Cir. 1979); Green v. Commissioner, 59 T.C. 456, 458 (1972).
Internal Revenue Service Publications, like the one on which
petitioners relied, are merely guides published by the Service to
aid taxpayers. Dixon v. United States, 381 U.S. 68, 73 (1965).
Petitioners may not rely on such publications to the extent the
information in them conflicts with the law. Respondent is
sustained on this issue.
The final issue for decision is whether petitioners are
liable for the section 6662(a) accuracy-related penalties for
negligence or disregard of rules or regulations. Section 6662(a)
provides for an addition to tax equal to 20 percent of the
portion of the underpayment to which the section applies. Under
section 6662(c), "'negligence' includes any failure to make a
reasonable attempt to comply with the provisions of this title,
and the term 'disregard' includes any careless, reckless, or
intentional disregard." Negligence is 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). However, under section 6664(c), the penalty
under section 6662(a) shall not be imposed with respect to any
portion of an underpayment if it is shown that there was
reasonable cause for the underpayment, and the taxpayer acted in
good faith.
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