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Generally, if any part of a taxpayer's underpayment of
income tax for a taxable year is attributable to negligence or
intentional disregard of rules or regulations, section 6653(a)
imposes an addition to tax equal to 5 percent of the
underpayment. For returns the due date for which (determined
without regard to extensions) is after December 31, 1986, section
6653(a)(1)(B) imposes an addition to tax equal to 50 percent of
the statutory interest with respect to the portion of the
underpayment attributable to negligence or intentional disregard
of rules and regulations. See Tax Reform Act of 1986, Pub. L.
99-514, sec. 1503(a), 100 Stat. 2742. This addition to tax,
equal to 50 percent of the statutory interest, was repealed by
sec. 1015(b)(2)(a) of the Technical and Miscellaneous Reverse Act
of 1988, Pub. L. 100-647, 102 Stat. 3569, effective for returns
the due date for which (determined without regard to extensions)
is after December 31, 1988.
Negligence is the failure to exercise due care or the
failure to do what a reasonable or ordinarily prudent person
would do under the circumstances. See Zmuda v. Commissioner, 731
F.2d 1417, 1422 (9th Cir. 1984), affg. 79 T.C. 714 (1982); Neely
v. Commissioner, 85 T.C. 934, 937 (1985).
Kanter contends that no additions to tax under section
6653(a) should be imposed against him because he acted
reasonably. Alternatively, he argues that, to the extent he
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