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accuracy-related penalty in the amount of 20 percent of any
underpayment that is attributable to negligence or disregard of
rules or regulations. “Negligence” is defined in section 6662(c)
as “any failure to make a reasonable attempt to comply with the
provisions of this title”, and “disregard” as “any careless,
reckless, or intentional disregard.” Section 1.6662-3(b)(1),
Income Tax Regs., further explains: “Negligence is strongly
indicated where-- * * * (ii) A taxpayer fails to make a
reasonable attempt to ascertain the correctness of a deduction,
credit or exclusion on a return which would seem to a reasonable
and prudent person to be ‘too good to be true’ under the
circumstances”. Case law similarly states that negligence is
“the failure to exercise the due care of a reasonable and
ordinarily prudent person under like circumstances.” Sanders v.
Commissioner, T.C. Memo. 1999-208; see also Neely v.
Commissioner, 85 T.C. 934, 947 (1985). The taxpayer bears the
burden of establishing that he or she was not negligent, had
reasonable cause for the underpayment, and acted in good faith.
See sec. 6664(c)(1); Neely v. Commissioner, supra at 947; Sanders
v. Commissioner, supra.
Here, petitioners do not aver any specific facts to rebut
respondent’s finding of negligence other than that the amounts
reported were uncontested. This assertion fails to meet
petitioners’ burden of showing that the treatment of these
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