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payable on the portion of the underpayment of tax attributable to
negligence.
The term "negligence" includes any failure to make a
reasonable attempt to comply with the provisions of the Code.
Sec. 6653(a)(3). Negligence also has been defined as a lack of
due care or the failure to do what a reasonable and ordinarily
prudent person would do under the circumstances. See Crocker v.
Commissioner, 92 T.C. 899, 916 (1989); Neely v. Commissioner, 85
T.C. 934, 947-948 (1985). Petitioners have the burden of proving
that the deficiency was not due to neglect or the intentional
disregard of rules or regulations. Rule 142(a); Neely v.
Commissioner, supra.
Petitioners did not address this issue in their brief nor
did they present any evidence at trial which would prove that the
omission of income was not due to negligence or the intentional
disregard of rules or regulations. Accordingly, we sustain
respondent's determination as to the additions to tax under
section 6653(a).
Addition to Tax for Substantial Understatement of Tax
Respondent determined that petitioners are liable for
additions to tax for the substantial understatement of their tax
liability for the years in issue.
Section 6661 imposes an addition to tax of 25 percent (10
percent for assessments made before October 22, 1986) of any
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