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therefore sustain respondent's adjustments to petitioners'
tax for the years in issue.
Additions to Tax for Negligence
Respondent determined that petitioners are liable for
the additions to tax for negligence prescribed by section
6653(a)(1)(A) and (B) with respect to their 1987 return and
section 6653(a) with respect to their 1988 return. Section
6653(a)(1)(A), in effect for 1987, and section 6653(a), in
effect for 1988, each imposed an addition to tax equal to
5 percent of an underpayment in tax if any part of such
underpayment is due to negligence or disregard of rules or
regulations. Section 6653(a)(1)(B), as in effect for 1987,
imposed an addition to tax equal to 50 percent of the
interest payable on the portion of an underpayment which
is attributable to negligence.
Generally, negligence is defined as "lack of due care
or failure to do what a reasonable and ordinarily prudent
person would do under the circumstances." Neely v.
Commissioner, 85 T.C. 934, 947 (1985) (quoting Marcello
v. Commissioner, 380 F.2d 499, 506 (5th Cir. 1967), affg.
in part and revg. in part 43 T.C. 168 (1964)). Petitioners
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