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under section 6653(a) for negligence and the valuation
overstatement addition to tax under section 6659.
Discussion
This case is one of many cases involving additions to tax
resulting from the plastics recycling scheme. See, e.g.,
Grelsamer v. Commissioner, T.C. Memo. 1996-399, affd. without
published opinion sub nom. Morgan v. Commissioner, 138 F.3d 957
(11th Cir. 1998). Except for a few cases that involved
exceptional circumstances, the Court has upheld the imposition of
the additions to tax. See Grelsamer v. Commissioner, supra at
n.2. This case is similar to the many cases that have fallen on
the other side of the line.
A. Section 6653(a)--Negligence
In a notice of deficiency for 1982 respondent determined
that petitioner is liable for the additions to tax for negligence
under section 6653(a)(1) and (2). Petitioner has the burden of
proving that respondent's determinations of these additions to
tax are erroneous. See Rule 142(a); Goldman v. Commissioner, 39
F.3d 402, 407 (2d Cir. 1994), affg. T.C. Memo. 1993-480; Luman v.
Commissioner, 79 T.C. 846, 860-861 (1982).
Section 6653(a)(1) imposes an addition to tax equal to 5
percent of the underpayment if any part of an underpayment of tax
is due to negligence or intentional disregard of rules or
regulations. Section 6653(a)(2) imposes an addition to tax equal
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