-62-
“Negligence” includes a failure to make a reasonable attempt
to comply with the provisions of the internal revenue laws. Sec.
6662(c); sec. 1.6662-3(b)(1), Income Tax Regs. “Disregard”
includes any careless, reckless, or intentional disregard of
rules or regulations. Sec. 6662(c); sec. 1.6662-3(b)(2), Income
Tax Regs.
The section 6662 accuracy-related penalty does not apply
with respect to any portion of an underpayment if it is shown
that there was reasonable cause for such portion and that
petitioners acted in good faith with respect to such portion.
Sec. 6664(c)(1). The determination of whether petitioners acted
with reasonable cause and in good faith depends upon the
pertinent facts and circumstances. Sec. 1.6664-4(b)(1), Income
Tax Regs. Petitioners have not established reasonable cause or
good faith reliance to excuse themselves from the penalties for
negligence or intentional disregard of rules or regulations. See
Mack v. Commissioner, T.C. Memo. 1995-482. Petitioners have
presented no evidence that their failure to file timely or to
report their income properly in 1990 or 1991 was due to anything
other than negligence or disregard of the tax laws. See Rapp v.
Commissioner, 774 F.2d 932, 935 (9th Cir. 1985).
Petitioners' failure to maintain and to produce reliable
records of their taxi business also supports a conclusion of
negligence. Crocker v. Commissioner, 92 T.C. 899, 917 (1989);
Schroeder v. Commissioner, 40 T.C. 30, 34 (1963). Thus,
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