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decision, petitioners cashed in an IRA and paid their liability.
Thereafter, on September 5, 1995, respondent issued the
affected items notice of deficiency for 1982 determining
additions to tax under sections 6653(a)(1) and (2) and 6659.
Petitioners filed their petition with this Court on November 20,
1995.
OPINION
Issue (1) Section 6653(a)(1) and (2) Negligence
Section 6653(a)(1) and (2) imposes additions to tax if any
part of the underpayment of the tax is due to negligence or
intentional disregard of rules or regulations. Negligence is
defined as the failure to exercise the due care that a reasonable
and ordinarily prudent person would exercise under the
circumstances. See Neely v. Commissioner, 85 T.C. 934, 947
(1985).
A taxpayer may avoid liability for negligence in the case of
reasonable reliance on a competent professional adviser. See
United States v. Boyle, 469 U.S. 241, 250-251 (1985); Freytag v.
Commissioner, 89 T.C. 849, 888 (1987), affd. 904 F.2d 1011 (5th
Cir. 1990), affd 501 U.S. 868 (1991). Although reliance on
professional advice, standing alone, is not an absolute defense
to negligence, it is a factor to be considered. See Freytag v.
Commissioner, supra.
The pertinent question is whether a particular taxpayer's
actions are reasonable in light of the taxpayer's experience, the
nature of the investment, and the taxpayer's actions in
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