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determined that petitioner is liable for the accuracy-related
penalty under section 6662(a), alleging that all of the
underpayment for 1989 “is due to negligence or disregard of rules
or regulations and you have not established that such
underpayment of tax was due to reasonable cause.” For each of
the years 1990 through 1992, respondent determined that
petitioner is liable for the accuracy-related penalty under
section 6662(a), alleging that all or part of petitioner’s
underpayment of tax for each of the years at issue “is
attributable to one or more of (1) negligence or disregard of
rules or regulations, (2) any substantial understatement of
income tax, or (3) any substantial valuation overstatement”.
As in effect for 1988, section 6653(a)(1) provides that, if
any part of an underpayment of tax is due to negligence or
disregard of rules or regulations, an amount equal to 5 percent
of the underpayment shall be added to the tax. For purposes of
section 6653(a), negligence is defined as a “lack of due care or
failure to do what a reasonable and ordinarily prudent person
would do under the circumstances”, Neely v. Commissioner, 85 T.C.
934, 947 (1985), and includes “any failure to make a reasonable
attempt to comply with the provisions” of the Internal Revenue
Code (the Code), section 6653(a)(3).
As in effect for 1989, 1990, 1991, and 1992, section 6662(a)
imposes a 20-percent accuracy-related penalty on the portion of
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