- 17 -
b. Addition to Tax for Negligence
Respondent determined that petitioner is liable for the section
6653(a)(1) addition to tax for an underpayment attributable to
negligence or disregard of rules or regulations. In this context,
negligence is “‘lack of due care or failure to do what a reasonable
and ordinarily prudent person would do under the circumstances.’”
Midwest Indus. Supply, Inc. v. Commissioner, T.C. Memo. 1996-130
(quoting Neely v. Commissioner, 85 T.C. 934, 947 (1985)), affd.
without published opinion 125 F.3d 855 (6th Cir. 1997).
Petitioner does not contend that he paid his 1988 tax
liability. He has failed to show that his underpayment was not
attributable to negligence or disregard of rules or regulations.
Therefore, we hold that petitioner is liable for the section
6653(a)(1) addition to tax with respect to the deficiency
attributable to his unreported net rental income.
c. Addition to Tax for Underpayment of Estimated Tax
Respondent determined that petitioner is liable for the section
6654(a) addition to tax for underpayment of estimated tax.
During the year at issue, petitioner filed no tax return and
paid no estimated taxes. Petitioner has not shown that any of the
exceptions contained in section 6654(e) applies. Accordingly, we
hold that petitioner is liable for the section 6654(a) addition to
tax with respect to the deficiency attributable to his unreported
net rental income.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011