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that a deficiency of $67,030 in petitioner's income tax for 1983,
resulting from an adjustment of petitioner's share of the
disallowed partnership items of Woodchuck and Wolverine, was
subject to an addition to tax for negligence of $3,351.50 (plus
50 percent of the interest due on $67,030). Respondent further
determined that the deficiency was subject to a $16,757.50
addition to tax for substantial understatement of tax liability.
OPINION
I. Addition to Tax for Negligence Under Section 6653(a)(1)
Section 6653(a) imposes an addition to tax for underpayments
attributable to negligence or disregard of rules or regulations.
The term "negligence" is defined as the failure to exercise the
due care that a reasonable and ordinarily prudent person would
exercise under the circumstances. Zmuda v. Commissioner, 731
F.2d 1417, 1422 (9th Cir. 1984), affg. 79 T.C. 714 (1982); 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); Goldman v. Commissioner, 39 F.3d 402, 406 (2d Cir. 1994),
affg. T.C. Memo. 1993-480.
In essence, we must decide whether petitioner was reasonable
in taking deductions relating to his investment in Wolverine and
Woodchuck. We conclude that he was not.
This Court has held that a taxpayer who is a tax attorney
will be held to a higher standard of reasonableness than a person
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