- 14 -
tional disregard. Sec. 6653(a)(3). Negligence also has been
defined as a lack of due care or failure to do what a reasonable
and prudent person ordinarily would do under similar circum-
stances. See Crocker v. Commissioner, 92 T.C. 899, 916 (1989);
Neely v. Commissioner, 85 T.C. 934, 947-948 (1985).
Failure by a taxpayer to keep adequate records may justify
imposition of the additions to tax for negligence. See Lysek v.
Commissioner, 583 F.2d 1088, 1094 (9th Cir. 1978), affg. T.C.
Memo. 1975-293; Crocker v. Commissioner, supra at 917. Failure
to maintain adequate records also indicates disregard of the
rules or regulations that require a taxpayer to keep permanent
records sufficient to establish, inter alia, the taxpayer's gross
income and deductions. See Crocker v. Commissioner, supra at
917. Failure to file timely a return without reasonable cause
also may be evidence that an underpayment of tax was attributable
to negligence or disregard of rules or regulations. See Emmons
v. Commissioner, 92 T.C. 342, 350 (1989), affd. 898 F.2d 50 (5th
Cir. 1990).
Petitioner concedes that he failed to keep adequate records
for 1986 and that he failed to file timely his 1986 return
without reasonable cause. Petitioner also concedes that he
failed to report $1,187 of income for 1986 that is attributable
to a refund of State and local income taxes that he received
during that year.
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