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applicable law in a substantially identical case that also
involved Clearwater, see Provizer v. Commissioner, supra.
A. Section 6653(a)--Negligence
In notices of deficiency, respondent determined that each of
petitioners was liable for the additions to tax for negligence
under section 6653(a)(1) and (2) for 1981, and that petitioners
Kaliban and Zimmer were liable for the negligence additions to
tax for 1982.12 Petitioners have the burden of proving that
respondent's determinations of these additions to tax are
erroneous. Rule 142(a); Luman v. Commissioner, 79 T.C. 846, 860-
861 (1982).
Section 6653(a)(1) imposes an addition to tax equal to 5
percent of the underpayment if any part of an underpayment of tax
is due to negligence or intentional disregard of rules or
regulations. Section 6653(a)(2) imposes an addition to tax equal
to 50 percent of the interest payable with respect to the portion
of the underpayment attributable to negligence or intentional
disregard of rules or regulations.
Negligence is defined as the failure to exercise the due
care that a reasonable and ordinarily prudent person would employ
under the circumstances. Neely v. Commissioner, 85 T.C. 934, 947
(1985). The question is whether a particular taxpayer's actions
12 As noted, in all but one of the notices of deficiency
respondent referred to sec. 6653(a)(1)(A) and (B). During 1981
and 1982, the negligence additions to tax were provided for under
sec. 6653(a)(1) and (2).
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