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of his support. Furthermore, given that petitioner’s brother
earned $7,789 during 2000, a sum in excess of the limitation
amount of section 151, he does not qualify as a dependent for
whom she is entitled to a deduction under section 151, and thus,
petitioner would not be entitled to file as a head of household
even if she could substantiate the aforementioned requirements.
Accordingly, we hold that petitioner is not entitled to claim
head-of-household status and the dependency exemption.
C. Penalties
Section 6662 imposes a penalty of 20 percent of the portion
of the underpayment which is attributable to negligence or
disregard of rules or regulations. See sec. 6662(a) and (b).
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).
“Negligence” includes the failure to make a reasonable attempt to
comply with provisions of the Internal Revenue Code, as well as
any failure by the taxpayer to keep adequate books and records or
to substantiate items properly. See sec. 1.6662-3(b)(1), Income
Tax Regs. The term “disregard” includes any careless, reckless,
or intentional disregard. See sec. 6662(c).
Nevertheless, a taxpayer may avoid the imposition of a
penalty if she is able to show that there was a reasonable cause
for, and that she acted in good faith with respect to, the
underpayment. See sec. 6664(c). The determination of whether
the taxpayer acted with reasonable cause and in good faith is
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