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petitioner is not liable for self-employment taxes pursuant to
section 1401 on his unreported gross income for 1989 and 1990.
III. Is Petitioner Liable for the Section 6662(a) Accuracy-
Related Penalties for Negligence for 1989 and 1990?
Respondent determined that petitioner is liable for the
accuracy-related penalty under section 6662(a) for negligence for
both 1989 and 1990. Petitioner bears the burden of proof on this
issue. Rule 142(a); Neely v. Commissioner, 85 T.C. 934 (1985);
Bixby v. Commissioner, 58 T.C. 757 (1972).
Section 6662(a) imposes an accuracy-related penalty of 20
percent on any portion of an underpayment of tax that is
attributable to items set forth in section 6662(b). Section
6662(b)(1) provides that section 6662(a) is to apply to any
portion of an underpayment attributable to negligence or
disregard of rules or regulations. Section 6662(c) defines
"negligence" to include any failure to make a reasonable attempt
to comply with the provisions of the Internal Revenue Code, and
defines "disregard" to include any careless, reckless, or
intentional disregard of rules or regulations.
The accuracy-related penalty of section 6662 does not apply
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 thereto. Sec. 6664(c)(1). Other than his
rejected claim of a nontaxable cash hoard, petitioner presented
no evidence that he was not negligent in failing to report the
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