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6662(a) imposes an accuracy-related penalty equal to 20 percent
of the portion of an underpayment that is attributable to
negligence, and petitioner will avoid this charge only if the
record shows that she was not negligent; i.e., she made a
reasonable attempt to comply with the provisions of the Internal
Revenue Code, and she was not careless, reckless, or in
intentional disregard of rules or regulations. Sec. 6662(c);
Drum v. Commissioner, T.C. Memo. 1994-433, affd. without
published opinion 61 F.3d 910 (9th Cir. 1995); see also Allen v.
Commissioner, 925 F.2d 348, 353 (9th Cir. 1991) (negligence
defined as a lack of due care or a failure to do what a
reasonable and prudent person would do under similar
circumstances), affg. 92 T.C. 1 (1989). Because the record does
not show that petitioner was not negligent, we sustain
respondent's determination on the applicability of this penalty.
In reaching our holdings herein, we have considered all
arguments by petitioner for contrary holdings, and, to the extent
not discussed above, find those arguments to be irrelevant or
without merit. To reflect respondent's concession,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011