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“Negligence” includes any failure to: (1) Make a reasonable
attempt to comply with the provisions of the internal revenue
laws, (2) exercise ordinary and reasonable care in preparing a
tax return, or (3) keep adequate books and records or
substantiate items properly. Sec. 6662(c); sec. 1.6662-3(b)(1),
Income Tax Regs. Negligence is indicated if a taxpayer fails to
include on an income tax return an amount of income shown on an
information return or fails to make a reasonable attempt to
ascertain the correctness of a deduction, credit, or exclusion on
a return that would seem to a reasonable and prudent person to be
“too good to be true” under the circumstances. Sec. 1.6662-
3(b)(1)(i) and (ii), Income Tax Regs. “Disregard” includes any
careless, reckless, or intentional disregard of rules or
regulations. Sec. 6662(c); sec. 1.6662-3(b)(2), Income Tax Regs.
Section 6664 provides an exception to the imposition of
accuracy-related penalties if the taxpayer shows that there was
reasonable cause for any portion of the underpayment, and that
the taxpayer acted in good faith. Sec. 6664(c); United States v.
Boyle, 469 U.S. 241, 242 (1985). Whether a taxpayer has acted
with reasonable cause and in good faith is a factual question.
Sec. 1.6664-4(b), Income Tax Regs. Generally, the most important
factor is the extent to which the taxpayer exercised ordinary
business care and prudence in attempting to assess his proper tax
liability. Id. Reliance on the advice of a professional (such
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