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6662(c). As applicable herein, section 6662(a) imposes an
accuracy-related penalty equal to 20 percent of the portion of an
underpayment that is attributable to negligence or substantial
understatement. Petitioner must prove that respondent erred in
determining that the accuracy-related penalty applies to the
instant years. Rule 142(a); Welch v. Helvering, 290 U.S. 111,
115 (1933); see also Allen v. Commissioner, 925 F.2d 348, 353
(9th Cir. 1991), affg. 92 T.C. 1 (1989); Bixby v. Commissioner,
58 T.C. 757, 791-792 (1972).
For 1992 and 1993, the accuracy-related penalty was
inapplicable if petitioner's understatement did not exceed the
greater of 10 percent of the tax required to be shown on the
return or $5,000. See sec. 6662(d)(1). For this purpose, an
amount was not understated to the extent it was based on
substantial authority or adequately disclosed in the return or in
a statement attached to the return. Sec. 6662(d)(2)(B). The
accuracy-related penalty was inapplicable for 1994 if petitioner
was not negligent, i.e., he made a reasonable attempt to comply
with the Code, and was not careless, reckless, or in intentional
disregard of rules or regulations.3 Sec. 6662(c).
We find that petitioner was not subject to an accuracy-
related penalty in any of the years. Petitioner's tax returns
3 Negligence has also been defined as a lack of due care or
a failure to do what a reasonable and prudent person would do
under similar circumstances. Allen v. Commissioner, 925 F.2d
348, 353 (9th Cir. 1991), affg. 92 T.C. 1 (1989).
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