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applicability of these penalties. The amount of these penalties
is left to be computed under Rule 155.
Respondent also determined that Beverly is liable for an
addition to its 1988 tax for negligence. See sec. 6653(a).
Section 6653(a) imposes an addition to tax equal to 5 percent of
the underpayment attributable to negligence. For this purpose,
negligence is defined similarly to the definition set forth above
for section 6662. The failure to file timely a tax return is
prima facie evidence of negligence. Emmons v. Commissioner,
92 T.C. 342, 349 (1989), affd. 898 F.2d 50 (5th Cir. 1990).
Beverly bears the burden of proving respondent wrong. Rule
142(a); Welch v. Helvering, supra.
We hold that Beverly has not met the burden of proof, and we
sustain respondent's determination on the applicability of this
addition to tax. The amount of this addition to tax is left to
be computed under Rule 155.
We have considered all arguments made by the parties for
contrary holdings and, to the extent not discussed above, find
them to be irrelevant or merit.
To reflect the foregoing,
Decisions will be entered
under Rule 155.
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