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section 6653(a)(2) in connection with a research and development
deduction disallowed at the partnership level.
Discussion
Section 6653(a)(2) imposes an addition to tax equal to 50
percent of the interest payable with respect to the portion of
underpayment attributable to negligence or intentional disregard
of rules and regulations for the period beginning on the last day
prescribed by law for payment of such underpayment (determined
without regard to any extension) and ending on the date of the
assessment of the tax. For purposes of section 6653, negligence
is defined as “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)
(quoting Marcello v. Commissioner, 380 F.2d 499, 506 (5th Cir.
1967), affg. in part and remanding in part 43 T.C. 168 (1964));
see Allen v. Commissioner, 925 F.2d 348, 353 (9th Cir. 1991),
affg. 92 T.C. 1 (1989); Zmuda v. Commissioner, 731 F.2d 1417,
1422 (9th Cir. 1984), affg. 79 T.C. 714 (1982). Negligence is
determined by testing a taxpayer’s conduct against that of a
reasonable, prudent person. Zmuda v. Commissioner, supra.
The Commissioner’s decision to impose the negligence penalty
is presumptively correct. Collins v. Commissioner, 857 F.2d
1383, 1386 (9th Cir. 1988), affg. Dister v. Commissioner, T.C.
Memo. 1987-217; Hansen v. Commissioner, 820 F.2d 1464, 1469 (9th
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