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to file was due to reasonable cause and not willful neglect. See
Higbee v. Commissioner, supra at 447. Petitioner did not argue
that his failure to file was due to reasonable cause, nor is
there any evidence in the record to suggest that petitioner’s
failure to file was due to reasonable cause. Accordingly, we
sustain the additions to tax under section 6651(a)(1).
III. Penalties for Underpayment of Tax
Section 6662 provides that a taxpayer may be liable for a
penalty of 20 percent of the portion of an underpayment of tax
(1) attributable to a substantial understatement of tax or (2)
due to negligence or disregard of rules or regulations. A
substantial understatement of tax occurs where the understatement
exceeds the greater of 10 percent of the tax required to be shown
or $5,000. Sec. 6662(d)(1)(A). “Negligence” is defined as any
failure to make a reasonable attempt to comply with the
provisions of the Internal Revenue Code and includes any failure
by the taxpayer to keep adequate books and records or to
substantiate items properly. Sec. 6662(c); sec. 1.6662-3(b)(1),
Income Tax Regs. “Disregard” includes any careless, reckless, or
intentional disregard. Sec. 6662(c).
A taxpayer may avoid the accuracy-related penalty with
respect to any portion of an underpayment of tax if the taxpayer
acted with reasonable cause and good faith under section
6664(c). The determination of whether the taxpayer acted with
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