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a partner will be liable for the addition to tax for
negligence pursuant to section 6653(a) if he has an
underpayment of tax some part of which is due to
negligence. The existence of an underpayment of tax at
the partner level cannot be made until the partner's
share of distributable items of income, loss,
deduction, and credit is determined in the partnership
level proceeding. Once the partnership level
proceeding ends, however, the factual question of
whether any part of the underpayment was due to the
partner's negligence must be answered at the partner
level.
N.C.F. Energy Partners v. Commissioner, supra at 744-745.
In the Omnibus Budget Reconciliation Act of 1989, Pub. L.
101-239, sec. 7721, 103 Stat. 2106, 2395-2397, Congress
consolidated the additions to tax for negligence and substantial
understatement under new section 6662 entitled "Imposition of
Accuracy-Related Penalty". Although respondent never amended
sec. 301.6231(a)(5)-1T(d), Temporary Proced. & Admin. Regs.,
supra, to include the accuracy-related penalty within the
definition of the term "affected items", we are satisfied that
Congress intended for accuracy-related penalties to be treated
similarly to additions to tax; i.e., as affected items. See
Crystal Beach Dev. of Destin Ltd. v. Commissioner, T.C. Memo.
2000-170; H. Conf. Rept. 101-386, at 652 (1989).
In Crystal Beach Dev. of Destin Ltd. v. Commissioner, supra,
we noted that Congress recently amended section 6221 to provide
that the applicability of any penalty, addition to tax, or
additional amount that relates to an adjustment to a partnership
item shall be determined at the partnership level. See Taxpayer
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