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year after the date the decision entered on June 4, 1999, became
final. Since no appeal was filed, the decision became final 90
days after it was entered. Secs. 7481(a)(1), 7483. The
limitations period for 1983 in this case expired in September of
2000. Therefore, respondent's notice of deficiency, mailed to
petitioners on July 3, 2000, was timely.
Additions to Tax for Negligence
Section 6653(a)(1) imposes an addition to tax equal to 5
percent of the underpayment of tax if any part of the
underpayment is attributable to negligence or intentional
disregard of rules or regulations. Section 6653(a)(2) provides
for a further addition to tax equal to 50 percent of the interest
due on the portion of the underpayment attributable to negligence
or intentional disregard of rules or regulations.
Negligence includes "any failure to reasonably attempt to
comply with the tax code, including the lack of due care or the
failure to do what a reasonable or ordinarily prudent person
would do under the circumstances." Chamberlain v. Commissioner,
66 F.3d 729, 732 (5th Cir. 1995), affg. in part and revg. in part
T.C. Memo. 1994-228. Generally, courts look both to the
underlying investment and to the taxpayer's position taken on the
return in evaluating whether a taxpayer was negligent. See Sacks
v. Commissioner, 82 F.3d 918, 920 (9th Cir. 1996), affg. T.C.
Memo. 1994-217.
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