- 21 -
record plainly supports respondent's determinations regardless of
such concession. For a detailed discussion of the facts and the
applicable law in a substantially identical case, see Provizer v.
Commissioner, supra.
A. Section 6653(a)--Negligence
Respondent asserted the additions to tax for negligence
under section 6653(a)(1) and (2) for 1981, and under section
6653(a) for the years 1978, 1979, and 1980, in an amended answer.
Because these additions to tax were raised for the first time in
an amended answer, respondent has the burden of proof. Rule
142(a); Vecchio v. Commissioner, 103 T.C. 170, 196 (1994); Bagby
v. Commissioner, 102 T.C. 596, 612 (1994).
Section 6653(a) for 1978, 1979, and 1980, and section
6653(a)(1) for 1981, impose 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) for 1981 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
in connection with the transactions were reasonable in light of
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011