- 33 -
We did so properly in this case when, in accordance with Rule
148(b), we did not require the witness to testify in the absence
of a tender of fees and mileage. We decline to reconsider that
action.
VI. Accuracy-Related Penalties
We must also decide whether petitioner is liable for
accuracy-related penalties for 1991 and 1992. Section 6662(a)
imposes an accuracy-related penalty in the amount of 20 percent
of the portion of an underpayment of tax attributable to
negligence or disregard of rules or regulations. See sec.
6662(a) and (b)(1). Negligence is any failure to make a
reasonable attempt to comply with the provisions of the internal
revenue laws. See sec. 6662(c); sec. 1.6662-3(b)(1), Income Tax
Regs. Negligence has been further defined as the failure to
exercise due care or the failure to do what a reasonable and
prudent person would do under the circumstances. See Neely v.
Commissioner, 85 T.C. 934, 947 (1985). Disregard includes any
careless, reckless, or intentional disregard of rules or
regulations. See sec. 6662(c); sec. 1.6662-3(b)(2), Income Tax
Regs. No penalty will be imposed 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. See sec. 6664(c).
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