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Additions to Tax for Negligence
Respondent determined that petitioner is liable for
additions to tax for negligence for 1986 and 1987 pursuant to
section 6653(a)(1)(A) and (B) and for 1988 pursuant to section
6653(a)(1).9 "Negligence" includes any failure to make a
reasonable attempt to comply with the provisions of the Code, and
the term "disregard" includes any careless, reckless, or
intentional disregard. Sec. 6653(a)(3). Furthermore, 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). Failure by a
taxpayer to keep adequate records may justify imposition of the
addition to tax for negligence. See Lysek v. Commissioner, 583
F.2d 1088, 1094 (9th Cir. 1978), affg. T.C. Memo. 1975-293;
Crocker v. Commissioner, 92 T.C. 899, 917 (1989). Failure to
maintain adequate records also indicates disregard of the rules
or regulations that require a taxpayer to keep permanent records
sufficient to establish, inter alia, the taxpayer's gross income
and deductions. See Crocker v. Commissioner, supra at 917.
Petitioner has the burden of proving he is not liable for the
addition to tax. Rule 142(a).
9 Respondent determined the additions to tax for negligence
on underpayments attributable to adjustments to income that were
not fraudulent; i.e., all the adjustments except for those
related to the unreported income.
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