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II. Additions to Tax and Penalty
A. Introduction
Section 6651(a) provides that an addition to the tax shall
be imposed in the case of failure to file a return, “unless it is
shown that such failure is due to reasonable cause and not due to
willful neglect”. Section 6654(a) provides that an addition to
tax shall be imposed in the case of any underpayment of estimated
tax by an individual. Section 6662(a) provides for a penalty
equal to 20 percent of the underpayment in tax attributable to,
among other things, negligence or disregard of rules or
regulations (without distinction, negligence). See sec.
6662(b)(1). The penalty for negligence will not apply to an
underpayment in tax to the extent that the taxpayer can show both
reasonable cause and the taxpayer acted in good faith. See sec.
6664(c)(1). Negligence has been defined as the failure to
exercise the due care of a reasonable and ordinarily prudent
person under like circumstances. See Neely v. Commissioner,
85 T.C. 934, 947 (1985).
B. Petitioner’s Position
In the petition, petitioner assigns error to respondent’s
determination of additions to tax and penalty, but she sets forth
no facts in support of that assignment of error. On brief,
petitioner argues:
The Commissioner has assessed a [sic] penalties
against Weir under sections 6651(a)(1), 6654, and
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Last modified: May 25, 2011