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investigation of the Alamo partnerships, were not the actions
that a reasonable and ordinary prudent person would have taken
under the circumstances. Accordingly, we conclude that the
underpayments for the years at issue were due to negligence under
section 6653.
If the Court finds petitioners negligent, as we have,
petitioners request a finding under section 6653(a)(2) as to the
portion of the underpayment that is attributable to negligence,
and the time period during which the underpayments were unpaid.
Petitioners' concerns about the periods for which section
6653(a)(2) applies can be addressed in the Rule 155 computation.
Section 6653(c)(1) defines an underpayment in the case of a
tax to which section 6211 is applicable as "a deficiency as
defined in [section 6211]." Under section 6211, the term
deficiency means "the amount by which the tax imposed * * *
exceeds the excess of * * * the amount shown as the tax by the
taxpayer upon his return." In determining whether an
underpayment exists, the tax shown on the taxpayer's return
"shall be taken into account only if such return was filed on or
before the last day prescribed for the filing of such return."
Sec. 6653(c)(1). The tax reported on an amended return filed
subsequent to the due date of the original return does not negate
the existence of an understatement. Emmons v. Commissioner, 92
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