- 10 - 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,Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011