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Commissioner, 82 T.C. 514, 523 (1984); Bradley v. Commissioner,
T.C. Memo. 1998-170.
Petitioners’ 1993 Federal income tax return was due on April
15, 1994. Petitioners filed their return just under 3 years
later and offered no rational explanation for their failure to
file the return timely. Petitioners failed to show that they
exercised ordinary care and prudence in this case. Accordingly,
petitioners are liable for the addition to tax under section
6651(a)(1). Respondent is sustained on this issue.
5. Section 6662 Penalty
Section 6662 provides that if any portion of any
underpayment is due to negligence, then a taxpayer will be liable
for a penalty equal to 20 percent of the underpayment of tax
required to be shown on the return that is attributable to the
taxpayer’s negligence or disregard of rules or regulations. See
sec. 6662(a) and (b)(1). Negligence is defined as the “lack of
due care or failure to do what a reasonable and ordinarily
prudent person would do under the circumstances.” Korshin v.
Commissioner, 91 F.3d 670, 672 (4th Cir. 1996), affg. T.C. Memo.
1995-46. As pertinent here, “negligence” includes the failure to
make a reasonable attempt to comply with the provisions of the
Internal Revenue Code and also includes any failure to keep
adequate books and records or to substantiate items properly.
See sec. 6662(c); sec. 1.6662-3(b)(1), Income Tax Regs.
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