Leon L. Zachman and Estate of Ione Zachman - Page 17

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         for tax purposes.  Cf. Commissioner v. Sunnen, 333 U.S. 591, 604             
         (1948); Hutcherson v. Commissioner, T.C. Memo. 1984-165.                     
              In light of our holdings on these issues, we need not reach             
         respondent’s alternative argument that petitioners should be                 
         taxed on the Hillside Farm income under the grantor trust rules.             
         Additions to Tax and Penalties                                               
              Respondent determined that petitioners are liable for                   
         additions to tax under section 6653(a) for taxable years 1987 and            
         1988, and an accuracy-related penalty under section 6662 for                 
         taxable year 1989.  Section 6653(a)(1)(A) imposes an addition to             
         tax equal to 5 percent of the underpayment if any part of the                
         underpayment is attributable to negligence.  Section                         
         6653(a)(1)(B) imposes an addition to tax equal to 50 percent of              
         the interest payable on the portion of the underpayment                      
         attributable to negligence.  Section 6662(a) imposes a 20-percent            
         penalty on any portion of an underpayment that is attributable to            
         negligence.  Negligence is the lack of due care or failure to do             
         what a reasonable and ordinarily prudent person would do under               
         the same circumstances.  See Neely v. Commissioner, 85 T.C. 934              
         (1985).  Petitioners have the burden of proving that respondent’s            
         determinations are incorrect.  See Rule 142(a); Bixby v.                     
         Commissioner, 58 T.C. 757, 791-792 (1972).                                   
              Petitioners argue only that because there is no underpayment            
         of tax, there is no amount upon which to compute additions to tax            

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