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the Internal Revenue Service by an attorney, Mark Vogel.
Although Vogel did not testify in this case, petitioner claims
to have spoken with him and relied on that conversation as
additional support for his belief that the Southampton master
recordings were bona fide investments.
OPINION
Petitioner has conceded that he is liable for the full
amount of the deficiencies determined by respondent relating to
his Southampton master recording investment. The only issue for
consideration is whether petitioner is liable for the additions
to tax for negligence under section 6653(a).
Section 6653(a) for 1979 and 1980 and section 6653(a)(1)
for 1981 through 1984 provide for an addition to tax equal to 5
percent of the underpayment if any part of an underpayment of
tax is due to negligence or intentional disregard of rules or
regulations. Section 6653(a)(2) for 1981 through 1984 provides
for an addition to tax of 50 percent of the interest on the
portion of the underpayment attributable to negligence.
Negligence is defined as a lack of due care or a failure to do
what a reasonable and ordinarily prudent person would do under
the circumstances. Neely v. Commissioner, 85 T.C. 934, 947
(1985). Respondent's determination of negligence is presumed to
be correct, and petitioner has the burden of proving that it is
erroneous. Rule 142(a); Bixby v. Commissioner, 58 T.C. 757,
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