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Special O elected to expense its equipment for the 1993 tax year,
it may not now withdraw that election and attempt to depreciate
the same equipment for 1993 without consent of the Commissioner.
We find that petitioner is not entitled to deduct section
179 expenses for the 1993 tax year. Respondent is sustained on
this issue.
5. Section 6662(a) Penalty
Finally, we must decide whether petitioner is liable for an
accuracy-related penalty for the 1991, 1992, and 1993 tax years.
Section 6662(a) imposes an accuracy-related penalty equal to
20 percent of the portion of any underpayment of tax that is due
to negligence or disregard of rules or regulations. Under
section 6662(c), negligence is any failure to make a reasonable
attempt to comply with the provisions of the Code, and the term
"disregard" includes any careless, reckless, or intentional
disregard. Negligence includes the failure to exercise the due
care of a reasonable and ordinarily prudent person under the
circumstances. See Neely v. Commissioner, 85 T.C. 934, 947
(1985). No penalty will be imposed on any portion of the
underpayment if it is shown that there was reasonable cause for
such portion and that the taxpayer acted in good faith with
respect to such portion. See sec. 6664(c). The most important
factor is the extent of the taxpayer's effort to assess his or
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