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additions to tax for 1983 and 1984 of $764 and $18 under section
6653(a)(1), and 50 percent of the interest due on a $15,285
deficiency and on a $359 deficiency under section 6653(a)(2).
Respondent also determined that petitioners are liable for an
addition to tax for 1983 in the amount of $3,821 under section
6661(a).
Discussion
Negligence
Section 6653(a)(1) imposes an addition to tax equal to 5
percent of the underpayment of tax if any part of the
underpayment is attributable to negligence or intentional
disregard of rules or regulations. Section 6653(a)(2) provides
for a further addition to tax equal to 50 percent of the interest
due on the portion of the underpayment attributable to negligence
or intentional disregard of rules or regulations. Negligence is
defined to include “any failure to reasonably comply with the Tax
Code, including the lack of due care or the failure to do what a
reasonable or ordinarily prudent person would do under the
circumstances.” Merino v. Commissioner, 196 F.3d 147, 154 (3d
Cir. 1999) (quoting Heasley v. Commissioner, 902 F.2d 380, 383
(5th Cir. 1990)), affg. T.C. Memo. 1997-385.
Petitioners’ primary argument is that they were not
negligent because they relied on advice from Mr. Trimboli.
Reasonable reliance on professional advice may be a defense to
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