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is adequate to support petitioner's contention. The bank
statements indicate that, on the date of decedent's death, the
balance in the account exceeded the partnership income that she
had deposited. There is no evidence, however, to establish that
she did not spend the partnership income and later deposit income
from other sources. In addition, Mr. Haynie testified that
decedent did not spend partnership funds for her personal
benefit. His testimony, which was apparently based on his review
of the bank statements and not any personal, independent
knowledge, fails to establish petitioner's contention.
As a result, the value of the partnership assets is
includable in decedent's gross estate pursuant to section
2036(a)(1).
Section 6662(a) imposes an accuracy-related penalty in an
amount equal to 20 percent of the portion of any underpayment to
which the section applies. The section applies to, among other
items, the portion of an underpayment attributable to negligence
or disregard of rules or regulations. Sec. 6662(b)(1).
Negligence has been defined as the 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). It includes the failure to make a reasonable attempt to
comply with the Internal Revenue Code. Sec. 6662(c).
Respondent contends that petitioner understated the value of
decedent's gross estate. Petitioner contends that it relied on
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