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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) (quoting Marcello v.
Commissioner, 380 F.2d 499, 506 (5th Cir. 1967), affg. in part
and remanding in part 43 T.C. 168 (1964)).
Although petitioner assigned error to respondent’s
determinations of additions to tax for negligence, petitioner has
failed to propose any findings of fact with respect thereto or
advance any persuasive arguments in support of that assignment.
On brief, petitioner simply states: “The statutory addition will
apply only if Petitioner is shown to be negligent or in
intentional disregard, and clearly that is not the case with
Petitioner.” Petitioner has the burden of proving that he was
not negligent. Rule 142(a). He has failed to carry that burden.
Respondent’s determinations of additions to tax under section
6653(a) are sustained, except to the extent necessary to reflect
concessions or agreements of the parties.
C. Substantial Understatement
By her notice of deficiency, respondent has determined
additions to tax under section 6661 for all of the years in
issue. For returns due before January 1, 1990, section 6661
provides for an addition to tax equal to 25 percent of the amount
of any underpayment attributable to a substantial understatement.
An understatement is "substantial" when the understatement for
the taxable year exceeds the greater of (1) 10 percent of the tax
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