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that he mailed their 1996 return on August 15, 1996. The burden
is on petitioners to prove that their return was filed on time or
that the failure is due to reasonable cause and not willful
neglect. Coltman v. Commissioner, 980 F.2d 1134 (7th Cir. 1992),
affg. T.C. Memo. 1991-127. Petitioners’ self-serving testimony
that they mailed the return on August 15, 1996, without more, is
insufficient to overcome this burden. Accordingly, petitioners
are liable for the addition to tax under section 6651(a)(1) for
the tax year 1996.
N. Section 6662(a) Accuracy-Related Penalty
Section 6662(a) imposes an accuracy-related penalty of 20
percent of the portion of the underpayment which is attributable
to negligence or disregard of rules or regulations. Sec.
6662(b)(1). Negligence is the lack of due care or failure to do
what a reasonable and ordinarily prudent person would do under
the circumstances. Neely v. Commissioner, 85 T.C. 934, 947
(1985). The term “disregard” includes any careless, reckless, or
intentional disregard. Sec. 6662(c). No penalty shall be
imposed if it is shown that there was reasonable cause for the
underpayment and the taxpayer acted in good faith with respect to
the underpayment. Sec. 6664(c).
Respondent argues that petitioners’ treatment of the horse
activity and NAS activity expenditures as business expenditures
was negligent or an intentional disregard of rules or
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