Philip Lewis Hart - Page 7

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               Section 6662(a) provides for an accuracy-related penalty in            
          the amount of 20 percent of the portion of an underpayment of tax           
          attributable to, among other things, negligence or disregard of             
          rules or regulations.  Sec. 6662(a) and (b)(1).  Negligence is              
          defined to include any failure to make a reasonable attempt to              
          comply with the provisions of the internal revenue laws.  Sec.              
          6662(c); sec. 1.6662-3(b)(1), Income Tax Regs.  Moreover,                   
          negligence is the failure to exercise due care or the failure to            
          do what a reasonable and prudent person would do under the                  
          circumstances.  Neely v. Commissioner, 85 T.C. 934, 947 (1985).             
          Disregard is defined to include any careless, reckless, or                  
          intentional disregard of rules or regulations.  Sec. 6662(c);               
          sec. 1.6662-3(b)(2), Income Tax Regs.                                       
               Clearly, by purposely not paying his taxes, petitioner has             
          not behaved as a reasonable and prudent person.  Petitioner has             
          shown an intentional disregard of the rules and regulations.  We            
          uphold the imposition of the accuracy-related penalties under               
          section 6662(a) for the underpayments of the 1994 and 1995 tax              
               We grant respondent’s motion for a penalty under section               
          6673.  Under section 6673, this Court may award a penalty to the            
          United States of up to $25,000 when the proceeding has been                 
          instituted or maintained by the taxpayer primarily for delay or             
          if the taxpayer’s position in such proceeding is frivolous or               

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