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liable for the year at issue for the accuracy-related penalty
under section 6662(a) and asserted the following alternative
grounds for the imposition of that penalty: Negligence under
section 6662(b)(1) and a substantial understatement of income tax
under section 6662(b)(2).
Petitioners bear the burden of proving that they are not
liable for the accuracy-related penalty under section 6662(a).
See Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).
Section 6662(a) imposes an accuracy-related penalty equal to
20 percent of the underpayment resulting from, inter alia,
negligence or disregard of rules or regulations, see section
6662(b)(1), or a substantial understatement of income tax, see
section 6662(b)(2). For purposes of section 6662(a), the term
“negligence” includes any failure to make a reasonable attempt to
comply with the Code, and the term “disregard” includes any
careless, reckless, or intentional disregard. See sec. 6662(c).
Negligence has also been defined as a lack of due care or failure
to do what a reasonable person would do under the circumstances.
See Leuhsler v. Commissioner, 963 F.2d 907, 910 (6th Cir. 1992),
affg. T.C. Memo. 1991-179; Antonides v. Commissioner, 91 T.C.
686, 699 (1988), affd. 893 F.2d 656 (4th Cir. 1990). An under-
statement is equal to the excess of the amount of tax required to
be shown in the tax return over the amount of tax shown in the
tax return, see sec. 6662(d)(2)(A), and is substantial in the
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