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equal to 20 percent of the portion of the underpayment to which
section 6662 applies. Section 6662(b)(1) provides that section
6662 shall apply to the portion of any underpayment attributable
to negligence or disregard of rules or regulations. Section
6662� provides that the term "negligence" includes any failure to
make a reasonable attempt to comply with the provisions of this
title, and the term "disregard" includes any careless, reckless,
or intentional disregard of rules or regulations. Negligence is
the lack of due care or failure to do what a reasonable and
ordinarily prudent person would do under the circumstances.
Neely v. Commissioner, 85 T.C. 934, 947 (1985).
However, under section 6664(c), no penalty shall be imposed
under section 6662(a) with respect to any portion of any
underpayment if it is shown that there was a reasonable cause for
such portion and that the taxpayer acted in good faith with
respect to such portion. The Commissioner's determination is
presumptively correct and will be upheld unless the taxpayer is
able to rebut the presumption. Luman v. Commissioner, 79 T.C.
846, 860-861 (1982); Bixby v. Commissioner, 58 T.C. 757, 791
(1972); Reily v. Commissioner, 53 T.C. 8, 13-14 (1969).
In the notices of deficiency issued to the corporation,
William R. Norwalk, and Robert and Patricia DeMarta, respondent
applied the section 6662(a) penalty to "all or part of the
underpayment of tax". With regard to the $23,320 adjustment
conceded by petitioners Robert and Patricia DeMarta, they have
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