Gary G. Bendickson - Page 10




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          failure to file was due to reasonable cause and not due to                  
          willful neglect.  Accordingly, we hold that petitioner is liable            
          for additions to tax under section 6651(a)(1) for the years 1993            
          and 1995 in the amounts of $794.25 and $389.75, respectively.               
               Respondent contends that petitioner is also liable for the             
          section 6662(a) penalty.  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, and also includes any failure by the                 
          taxpayer to keep adequate books and records, or to substantiate             
          items properly.  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.                              
               Petitioner did not provide any substantiation at trial for             
          the deductions he claimed.  He did not maintain adequate records            
          as required under section 6001.  We find that respondent                    
          established that petitioner was negligent and that he disregarded           





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