-7- OPINION Issue 1. Negligence Section 6653(a)(1) provides that if any part of an underpayment of tax is the result of negligence or intentional disregard of rules or regulations, 5 percent of the underpayment is added to the tax. Section 6653(a)(2) imposes an addition to tax of 50 percent of the interest on the portion of the underpayment attributable to negligence. Negligence is defined as the failure to exercise the due care that a reasonable, prudent person would exercise under similar 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); Luman v. Commissioner, 79 T.C. 846, 860-861 (1982). Reasonable reliance on the advice of experts can be sufficient to avoid the negligence penalty. Ewing v. Commissioner, 91 T.C. 396, 423 (1988), affd. without published opinion and affd. without published opinion sub nom. Czarneski v. Commissioner, 940 F.2d 1534 2(...continued) applicability of the sec. 6621(c) increased rate of interest on petitioners’ previously determined deficiencies for 1982 and 1983 is not a “deficiency” attributable to an affected item requiring partner level determination, and thus is not one of the adjustments in the notice of deficiency, we do not have jurisdiction to consider (in the setting presented in this case) whether petitioners are liable for additional interest. See White v. Commissioner, 95 T.C. 209 (1990).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
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