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docket Nos. 9700-00 and 9701-00 do not contain any valid reason
why those cases should not be dismissed for lack of prosecution.
Those respective responses contained contentions and arguments
that the Court found in the Court’s January 17, 2002 Order to be
frivolous and/or groundless.
Section 7491(c) provides in pertinent part:
SEC. 7491. BURDEN OF PROOF.
(c) Penalties.–-Notwithstanding any other provi-
sion of this title, the Secretary shall have the burden
of production in any court proceeding with respect to
the liability of any individual for any penalty * * *.
Section 6662(a) imposes an accuracy-related penalty equal to
20 percent of the underpayment of tax resulting from, inter alia,
negligence or disregard of rules or regulations, sec. 6662(b)(1),
or a substantial understatement of income tax, sec. 6662(b)(2).
For purposes of section 6662(a), an understatement is equal to
the excess of the amount of tax required to be shown in the tax
return over the amount of tax shown in the tax return, sec.
6662(d)(2)(A), and is substantial in the case of an individual if
it exceeds the greater of 10 percent of the tax required to be
shown in the return or $5,000, sec. 6662(d)(1)(A). For purposes
of section 6662(a), the term “negligence” includes any failure to
make a reasonable attempt to comply with the Code, and the term
“disregard” includes any careless, reckless, or intentional
disregard. Sec. 6662(c). Negligence has also been defined as a
lack of due care or failure to do what a reasonable person would
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