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tax instructions. Table 1-1 informed petitioner that a single
taxpayer under the age of 65 with a gross income of at least
$6,250 must file a tax return. Petitioner believed that he was
not required to file a 1994 tax return because his gross income,
which incorrectly did not include the gain from the sale of the
Tryon Road property, was under $6,250.
However, Table 1-1 also provides the following information:
“Gross income means all income you received in the form of money,
goods, property, and services that is not exempt from tax,
including any gain on the sale of your [main] home (even if you
may exclude or postpone part or all of the gain).”
Petitioner received a Form 1099-S, Proceeds From Real Estate
Transactions, from Title Guaranty Company of Lewis County
reporting the real estate sale proceeds in 1994 of $175,000.
Petitioner stipulated that he did not make any attempt to
determine whether he should report the amount shown on the Form
1099-S on his 1994 Federal income tax return. Petitioner has
failed to show us that he exercised ordinary care and prudence in
this case. Respondent is sustained on this issue.
Section 6662(a)
The last issue for decision is whether petitioner is liable
for an accuracy-related penalty pursuant to section 6662(a).
Section 6662(a) imposes a penalty of 20 percent of the portion of
the underpayment which is attributable to negligence or disregard
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