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increase in the penalty attributable to petitioners'
underreporting of income for 1990 is a new matter within the
meaning of Rule 142(a), for which respondent bears the burden of
proof. Respondent, however, made no argument on brief regarding
the increase. Consequently, we consider the increase in the
penalty attributable to petitioners' underreporting of income for
1990 to have been conceded by respondent. Rybak v. Commissioner,
91 T.C. 524, 566 (1988).
Section 6662(a) imposes a 20-percent penalty on the portion
of an underpayment of tax that is attributable to, inter alia,
(1) negligence or disregard of rules or regulations or (2) any
substantial understatement of income tax. The term "negligence"
includes any failure to make a reasonable attempt to comply with
the provisions of the Code, including failure to exercise due
care, failure to do what a reasonable person would do under the
circumstances, or failure to keep adequate books and records or
to substantiate items properly. Sec. 1.6662-3(b)(1), Income Tax
Regs. The term "disregard" includes any careless, reckless, or
intentional disregard of the Code or the temporary or final
regulations issued pursuant to the Code. Sec. 6662(c); sec.
1.6662-3(b)(2), Income Tax Regs. A substantial understatement of
tax is defined as the amount which exceeds the greater of 10
percent of the tax required to be shown on the return for the
taxable year or $5,000. Sec. 6662(d)(1)(A).
The accuracy-related penalty does not apply to any portion
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