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3. Accuracy-Related Penalty Under Section 6662(a)
Respondent determined that petitioners were liable for the
accuracy-related penalty under section 6662(a) for 1993. The
accuracy-related penalty is equal to 20 percent of any portion of
an underpayment attributable to a taxpayer's negligence or
disregard of rules or regulations. Sec. 6662(a) and (b)(1). The
term "negligence" includes any failure to make a reasonable
attempt to comply with the provisions of the Internal Revenue
Code, and the term "disregard" includes any careless, reckless,
or intentional disregard. Sec. 6662(c). The penalty does not
apply to any portion of an underpayment for which there was
reasonable cause and with respect to which the taxpayer acted in
good faith. Sec. 6664(c). Generally, the Commissioner's
determination imposing the accuracy-related penalty is presumed
correct, and taxpayers bear the burden of proving that they are
not liable for the accuracy-related penalty imposed by section
6662(a). Rule 142(a); Tweeddale v. Commissioner, 92 T.C. 501,
505 (1989).
In this instance, petitioners have offered no evidence that
they made a reasonable attempt to report the items of income and
deductions in issue. Petitioners have failed to meet their
burden of proving that they are not liable for the accuracy-
related penalty. We, therefore, sustain respondent's
determination on this issue.
To reflect the foregoing,
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