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respect to such portion.
Respondent’s determination in a negligence case is
presumptively correct, and petitioner has the burden of proving
that it was not negligent, or that there was “reasonable cause”
for the error, and that it acted “in good faith”:8
The section 6653(a) additions[9] involve negligence or
intentional disregard of rules and regulations. The
burden of proof as to such additions is upon
petitioners. * * * They have submitted no evidence
whatever in this respect. These additions must
therefore be sustained.
Lair v. Commissioner, 95 T.C. 484, 493 (1990). Petitioner
introduced no evidence to meet its burden of proof to show
“reasonable cause” for the errors or to show that it acted in
good faith. We therefore sustain respondent's determination that
petitioner is liable for the accuracy-related penalty on the
deficiencies.
To give effect to the foregoing,
Decision will be entered
under Rule 155.
8See supra note 6.
9The negligence accuracy-related penalty was formerly an
addition to tax under former sec. 6653(a). The negligence
provisions were revised and moved to sec. 6662 by the Omnibus
Budget Reconciliation Act of 1989, Pub. L. 101-239, sec.
7721(c)(1), 103 Stat. 2399.
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