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allocated to that schedule is deductible on line 6 of Schedule A
for 1993.
Accuracy-Related Penalty
Respondent determined an accuracy-related penalty under
section 6662(a). Section 6662(a) imposes a penalty of 20 percent
on any portion of an underpayment of tax that is attributable to
negligence or disregard of rules or regulations. Sec. 6662(a)
and (b)(1). “Negligence” is defined as any failure to make a
reasonable attempt to comply with the provisions of the Internal
Revenue Code, and the term “disregard” includes any careless,
reckless, or intentional disregard. Sec. 6662(c). A position
with respect to an item is attributable to negligence if it lacks
a reasonable basis. Sec. 1.6662-3(b)(1), Income Tax Regs.
Section 6664(c)(1) provides that the penalty under section
6662(a) shall not apply to any portion of an underpayment, if it
is shown that there was reasonable cause for the taxpayer’s
position with respect to that portion and that the taxpayer acted
in good faith with respect to that portion. Sec. 6664(c)(1).
The determination of whether a taxpayer acted with reasonable
cause and good faith within the meaning of section 6664(c)(1) is
made on a case-by-case basis, taking into account all the
pertinent facts and circumstances. Sec. 1.6664-4(b)(1), Income
Tax Regs.
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