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6662(b)(1). For purposes of section 6662(a), the term "negli-
gence" includes any failure to make a reasonable attempt to
comply with the Code, and the term "disregard" includes any
careless, reckless, or intentional disregard. 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.
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). Failure to
maintain adequate books and records or to substantiate items
properly constitutes negligence. Sec. 1.6662-3(b)(1), Income Tax
Regs.
The accuracy-related penalty under section 6662(a) does not
apply to any portion of an underpayment if it is shown that there
was reasonable cause for such portion and that the taxpayer acted
in good faith. Sec. 6664(c)(1). The determination of whether
the taxpayer acted with reasonable cause and in good faith
depends on the pertinent facts and circumstances, including the
taxpayer’s efforts to assess his or her proper tax liability, the
knowledge and experience of the taxpayer, and the reliance on the
advice of a professional, such as an accountant. Sec. 1.6664-
4(b)(1), Income Tax Regs. In the case of claimed reliance on the
accountant who prepared the taxpayer’s tax return, the taxpayer
must establish that correct information was provided to the
accountant and that the item incorrectly omitted, claimed, or
reported in the return was the result of the accountant’s error.
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