Charles A. Greene and Christine J. Greene - Page 25

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          did not reasonably rely in good faith on the advice of a                    
          competent expert in reporting their deductions and credits from             
          Mid Continent on their 1983 and 1984 Federal income tax returns.            
          For each return petitioners failed to exercise the due care that            
          a reasonable and ordinarily prudent person would employ under the           
          circumstances.                                                              
          The Effect of Petitioners' Amended Return for 1983                          
               In December of 1986, several months after learning that the            
          Mid Continent partnership return for 1983 would be examined by              
          respondent, petitioners filed an amended joint individual Federal           
          income tax return for tax year 1983.  Petitioners argue that when           
          deciding the issue of negligence for 1983, the "entire record",             
          including the amended return, must be considered.  According to             
          petitioners, since they reported and paid additional tax, there             
          is no negligent underpayment of tax for 1983; it is vitiated by             
          the amended return.                                                         
               If the Court nevertheless determines that the negligence               
          additions to tax apply, they argue that as to the section                   
          6653(a)(2) addition of 50 percent of the interest due on the                
          portion of the underpayment that is attributable to negligence,             
          all of the underpayment was paid with the amended return in 1986.           
          Any deficiency that remained, petitioners argue, relates to their           
          deduction of "out-of pocket-expenses" and not to any negligence             
          on their part.  Therefore, they argue that the section 6653(a)(2)           





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