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Respondent contends that petitioners are liable for the
accuracy-related penalty under section 6662(a). 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. 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. Petitioners presented no evidence
regarding the accuracy-related penalty. They failed to keep
adequate records as required by section 6001. We find that
petitioners are liable for the accuracy-related penalty which
must be recalculated under Rule 155.
To the extent that we have not addressed any of the parties'
arguments, we have considered them and find them to be without
merit.
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011