Charles A. Greene and Christine J. Greene - Page 14

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          underpayment of tax for purposes of the section 6653(a)(1)                  
          and (2) additions to tax.                                                   
               Respondent's determinations, contained in the notice of                
          deficiency, are presumed correct, and petitioners bear the burden           
          of proving otherwise.  Rule 142(a); Welch v. Helvering, 290 U.S.            
          111, 115 (1933).  Therefore, petitioners have the burden of                 
          proving that they were not negligent in this case.  See Schrum v.           
          Commissioner, 33 F.3d 426, 437 (4th Cir. 1994), affg. in part and           
          vacating in part T.C. Memo. 1993-124; Estate of Mason v.                    
          Commissioner, 64 T.C. 651 (1975), affd. 566 F.2d 2 (6th Cir.                
               Section 6653(a)(1) imposes an addition to tax if any "part             
          of any underpayment" of tax is due to negligence or intentional             
          disregard of rules or regulations.  Section 6653(a)(2) imposes an           
          addition to tax in an amount equal to 50 percent of the interest            
          due on the portion of the underpayment attributable to                      
          Definition of Negligence Under Section 6653(a)                              
               Negligence is defined as the failure to exercise the due               
          care that a reasonable and ordinarily prudent person would employ           
          under the circumstances.  Neely v. Commissioner, 85 T.C. 934, 947           
          (1985).  Thus, to avoid imposition of the addition to tax,                  
          petitioners must show that their actions in connection with the             
          deductions and credits from Mid Continent on their 1983 and 1984            

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