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in Home Depot stock was settled, the section 6662 penalty
was not.
Section 6662 imposes a penalty equal to 20 percent
of any portion of an underpayment of tax attributable to
negligence or disregard of rules or regulations, or to a
substantial understatement of income tax. Negligence is
defined as "any failure to make a reasonable attempt to
comply with the provisions of this title". Sec. 6662(c).
Disregard is defined as "any careless, reckless, or
intentional disregard." Sec. 6662(c). Petitioners
bear the burden of proving that respondent's determina-
tion of negligence or intentional disregard of rules or
regulations is erroneous. Rule 142(a); Forseth v.
Commissioner, 85 T.C. 127, 166 (1985), affd. 845 F.2d 746
(7th Cir. 1988), affd. sub nom. Mahoney v. Commissioner,
808 F.2d 1219 (6th Cir. 1987), affd. without published
opinions sub nom. Woolridge v. Commissioner, 800 F.2d 266
(11th Cir. 1986); affd. without published opinion sub
nom. Bramblett v. Commissioner, 810 F.2d 197 (5th Cir.
1987); affd. sub nom. Enrici v. Commissioner, 813 F.2d
293 (9th Cir. 1987).
With regard to the deficiency arising from the SWI
stock, petitioners point to the fact that petitioner
engaged in "extensive discussions" with Dubin Clark
regarding his employment with SWI and his purchase of SWI
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