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the term "disregard" includes any careless, reckless, or
intentional disregard. Sec. 6662(c).
The accuracy-related penalty will not apply if petitioner
demonstrates that there was reasonable cause for the underpayment
and that she acted in good faith with respect to the
underpayment. See sec. 6664(c). Whether a taxpayer acted with
reasonable cause and good faith depends on the pertinent facts
and circumstances. See McCallson v. Commissioner, T.C. Memo.
1993-528; sec. 1.6664-4(b)(1), Income Tax Regs.
Neither petitioner nor respondent argued or produced any
evidence indicating that petitioner had knowledge of the
overpayments prior to filing her 1999 Federal tax return. During
trial the Court asked petitioner why she did not report the
Social Security benefits. Petitioner's response provided no
legally significant reason; she claimed that she did not know she
needed to report Social Security benefits as income and that she
was "naive". She concluded by stating that "I'm definitely at
fault for that."
The Court finds that petitioner failed to make a reasonable
attempt to determine whether she should report any portion of the
Social Security benefits she received in 1999. Further,
petitioner failed to produce any evidence to show that she acted
with reasonable cause and good faith for the year at issue. The
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