29
income they did not report for those years. Thus, we sustain
respondent on this issue.
D. Additions to Tax and Penalty
1. Negligence
Negligence is a lack of due care or failure to do what a
reasonable and ordinarily prudent person would do under the
circumstances. Zmuda v. Commissioner, 731 F.2d 1417, 1422 (9th
Cir. 1984), affg. 79 T.C. 714 (1982); 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; Neely v.
Commissioner, 85 T.C. 934, 947 (1985). Petitioners must show
that they acted reasonably and prudently and exercised due care.
Neely v. Commissioner, supra.
Petitioners argue that they are not liable for additions to
tax for negligence and substantial understatement and the
accuracy-related penalty because they relied on their accountant
to prepare accurate returns for them for 1990 and 1991.
Petitioners point out that Perkins testified that petitioner-
husband prepared summaries of his business activities for 1990
and 1991, and that Perkins believed the summaries were accurate.
Good faith reliance on the advice of a competent,
independent tax professional may offer relief from the imposition
of the addition to tax for negligence. United States v. Boyle,
469 U.S. 241, 251 (1985); Leonhart v. Commissioner, 414 F.2d 749,
750 (4th Cir. 1969), affg. T.C. Memo. 1968-98; Otis v.
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