- 19 -
Addington v. Commissioner, 205 F.3d 54, 58 (2d Cir. 2000), affg.
Sann v. Commissioner, T.C. Memo. 1997-259; Bixby v. Commissioner,
58 T.C. 757, 791-792 (1972); Anderson v. Commissioner, T.C. Memo.
1993-607, affd. 62 F.3d 1266 (10th Cir. 1995). See generally
Rule 142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84
(1992); Welch v. Helvering, 290 U.S. 111, 115 (1933).19
Section 6653(a)(1) imposes an addition to tax in an amount
equal to 5 percent of the underpayment of tax if any part of the
underpayment is due to negligence or intentional disregard of
rules or regulations. Section 6653(a)(2) imposes another
addition to tax in an amount 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 as the failure to exercise the due
care that a reasonable and ordinarily prudent person would
exercise under like circumstances. See Anderson v. Commissioner,
62 F.3d 1266, 1271 (10th Cir. 1995), affg. T.C. Memo. 1993-607;
18(...continued)
increase is purely computational in nature, and respondent has
convincingly demonstrated the proper amount of the addition to
tax. Accordingly, our analysis proceeds on the basis that
petitioner bears the burden of proof regarding his liability for
this addition to tax. In any event, we would resolve this issue
for respondent based on a preponderance of the evidence.
19 Cf. sec. 7491(c), effective for court proceedings
arising in connection with examinations commencing after July 22,
1998. In the present case, the examination of petitioner’s
income tax return for 1983 commenced well before July 22, 1998.
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