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determination that this amount constitutes income to
petitioners.
Additions to Tax and Penalty
Respondent determined that petitioners are liable
for the addition to tax for negligence in 1988 as
prescribed by section 6653(a)(1). During 1988, section
6653(a)(1) imposed an addition to tax equal to 5 percent
of an underpayment if any part of the underpayment is
attributable to negligence or disregard of rules or
regulations. Sec. 6653(a)(1). For this purpose,
negligence is defined as "any failure to make a reasonable
attempt to comply with the provisions [of the Internal
Revenue Code]". Sec. 6653(a)(3). Negligence includes
any "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 remanding in part
43 T.C. 168 (1964) and T.C. Memo. 1964-299); see also
Hitchins v. Commissioner, 103 T.C. 711, 719 (1994). The
term "disregard" includes any careless, reckless, or
intentional disregard. Sec. 6653(a)(3). Petitioners bear
the burden of proving that respondent's determination of
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