Paul A. Bilzerian - Page 9




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          where any part of the underpayment was due to negligence or                 
          disregard of rules or regulations.  Section 6653(a)(1)(B) imposed           
          an addition to tax in an amount equal to 50 percent of the                  
          interest payable under section 6601 with respect to the portion             
          of the underpayment which was attributable to negligence.                   
          Negligence within the meaning of section 6653(a) has been defined           
          as the lack of due care or failure to do what a reasonable and              
          ordinarily prudent person would do under the circumstances.                 
          Neely v. Commissioner, 85 T.C. 934, 947 (1985) (citing Marcello             
          v. Commissioner, 380 F.2d 499, 506 (5th Cir. 1967), affg. in part           
          and remanding in part 43 T.C. 168 (1964)).  Respondent’s                    
          determination is presumed correct, and petitioner bears the                 
          burden of proving that he was not negligent.  Rule 142(a);                  
          Stovall v. Commissioner, 762 F.2d 891, 895 (11th Cir. 1985),                
          affg. T.C. Memo. 1983-450; Bixby v. Commissioner, 58 T.C. 757,              
          791-792 (1972).                                                             
               Petitioner claims that he provided his accountant, Mr.                 
          Norris, with all necessary information to prepare an accurate tax           
          return and that Mr. Norris mistakenly omitted the $4 million of             
          taxable income from the return.  Petitioner contends that he                
          reviewed the return before signing and filing it, but he did not            
          notice any errors.  Respondent argues that petitioner knew of the           
          omission of the $4 million of taxable income at the time he filed           
          the original return for 1986.  Respondent claims that even if               






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