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The third issue for decision is whether petitioner is liable
for the section 6653(a)(1) additions to tax for negligence.
We first review the language of section 6653(a)(1) which is
applicable to petitioner's 1987 taxable year. With respect to
tax returns the due date for which is after December 31, 1986,
section 6653(a)(1)(A) provides for an addition to tax equal to 5
percent of the entire underpayment of tax if any part of the
underpayment is due to negligence or intentional disregard of
rules or regulations. Furthermore, section 6653(a)(1)(B)
provides for an addition to tax equal to 50 percent of the
interest payable with respect to the portion of the underpayment
which is attributable to negligence or intentional disregard of
rules or regulations.
We next review the language of section 6653(a)(1) which is
applicable to petitioner's 1988 taxable year. With respect to
returns the due date for which is after December 31, 1988,
section 6653(a)(1) provides that if any part of any underpayment
required to be shown on a return is due to negligence or
disregard of rules or regulations, there shall be added to the
tax an amount equal to 5 percent of the underpayment.
We have defined negligence under section 6653 as a 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). Petitioner bears the
burden of proving that no part of the underpayments for the years
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