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return for 1989 on September 19, 1990. Petitioner did not offer
any evidence on the issue at trial nor address it in his briefs.
Therefore, we consider him to have conceded his liability for the
delinquency addition.
Penalty Under Section 6662(a)
Section 6662(a) imposes a penalty in an amount equal to 20
percent of the portion of the underpayment of tax attributable to
one or more of the items set forth in section 6662(b), including
negligence or disregard of the rules or regulations. Respondent
determined that a portion of the underpayment of petitioner's tax
was due to negligence or intentional disregard of rules and
regulations. Sec. 6662(b)(1). Petitioner bears the burden of
proof on the penalty issue. Rule 142(a); Neely v. Commissioner,
85 T.C. 934, 947 (1985).
The accuracy-related penalties of section 6662 do not apply
with respect to any portion of an underpayment if it is shown
that there was reasonable cause for such portion and the taxpayer
acted in good faith with respect to such portion. Sec.
6664(c)(1).
Petitioner conceded at trial that he could not substantiate
his interest deduction beyond what had already been allowed by
respondent. Petitioner has offered no evidence that he was not
negligent in deducting the excess amount or that he had
reasonable cause to do so. In fact, petitioner's briefs fail to
address the negligence issue at all. We cannot be sure that
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