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V. Accuracy-Related Penalty
Respondent determined that both Burien Nissan and the
Johnstons were liable for an accuracy-related penalty under
section 6662(a). Section 6662(a) imposes a penalty in an amount
equal to 20 percent of the portion of the underpayment of tax
attributable to a taxpayer's negligence or disregard of rules or
regulations, or any substantial underpayment of income tax. See
sec. 6662(a), (b)(1) and (2).
Section 6662(c) provides that the term "negligence" includes
any failure to make a reasonable attempt to comply with the
provisions of this title, and the term "disregard" includes any
careless, reckless, or intentional disregard of rules or
regulations. The Commissioner's determination that a taxpayer
was negligent is presumptively correct, and the burden is on the
taxpayer to show lack of negligence. See Hall v. Commissioner,
729 F.2d 632, 635 (9th Cir. 1984), affg. T.C. Memo. 1982-337. We
sustain respondent’s determination of the accuracy-related
penalty under section 6662(a) and (b)(1) for the following
reasons: Burien Nissan and the Johnstons provided no direct
evidence regarding the negligence penalty to rebut the
presumption of correctness, and the evidence that is in the
record tends to indicate a disregard of the rules and
regulations. See Rethorst v. Commissioner, T.C. Memo. 1972-222,
affd. 509 F.2d 623 (9th Cir. 1974).
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