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understatement penalty no longer exists. Accordingly, we hold
that petitioner is not liable for this penalty for either taxable
year.
C. Accuracy-Related Penalty
Finally, respondent determined that petitioner was liable
for the accuracy-related penalty pursuant to section 6662(a) for
1990 for negligence. Section 6662(a) imposes a penalty equal to
20 percent of the portion of an underpayment of tax attributable
to a taxpayer’s negligence, disregard of rules or regulations, or
substantial understatement of income tax. Sec. 6662(a), (b)(1)
and (2). “Negligence” has been defined as the failure to do what
a reasonable and ordinarily prudent person would do under the
circumstances. Neely v. Commissioner, 85 T.C. 934, 947 (1985).
However, section 6662(a) does not apply to “any portion of an
underpayment if it is shown that there was a reasonable cause for
such portion and that the taxpayer acted in good faith with
respect to such portion.” Sec. 6664(c)(1). The Commissioner’s
determination that a taxpayer was negligent is presumptively
correct, and the burden is on the taxpayer to show a lack of
negligence. Hall v. Commissioner, 729 F.2d 632, 635 (9th Cir.
1984), affg. T.C. Memo. 1982-337.
After factoring in the parties’ concessions and our
decisions in petitioner’s favor, petitioner’s tax liability for
1990 stems from $6,253 of omitted W-2, Wage and Tax Statement,
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