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interest payable with respect to that portion of the underpayment
attributable to negligence.
"Negligence" is defined as a lack of due care or a failure
to act in a reasonable and prudent manner under the
circumstances. Freytag v. Commissioner, 89 T.C. 849, 887 (1987),
affd. 904 F.2d 1011 (5th Cir. 1990), affd. on another issue 501
U.S. 868 (1991). Petitioner bears the burden of proving that his
actions in claiming the loss and credit were not negligent. Rule
142(a); Freytag v. Commissioner, supra at 887. "When considering
the negligence addition, we evaluate the particular facts of each
case, judging the relative sophistication of the taxpayers as
well as the manner in which the taxpayers approached their
investment." Turner v. Commissioner, T.C. Memo. 1995-363. Under
certain circumstances, reliance on professional advice may
provide an adequate excuse for a taxpayer's actions under section
6653(a); however "standing alone, [it] is not an absolute defense
to negligence, but rather a factor to be considered." Freytag v.
Commissioner, supra at 888. The taxpayer must show that his
expert had the relevant expertise and knowledge of pertinent
facts to give competent advice. Goldman v. Commissioner, 39 F.3d
402, 408 (2d Cir. 1994), affg. T.C. Memo. 1993-480; Freytag v.
Commissioner, supra at 888. "Reliance on expert advice is not
reasonable where the 'expert' relied on knows nothing about the
business in which the taxpayer invested." Goldman v.
Commissioner, supra at 408. In addition, the taxpayer must not
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