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apply to any underpayment attributable to negligence or disregard
of rules or regulations.
Section 6662(c) provides that the term "negligence" includes
any failure to make a reasonable attempt to comply with the
provisions of the internal revenue laws, and the term "disregard"
includes any careless, reckless, or intentional disregard of
rules or regulations. 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). Under section 6664(c), no penalty shall be
imposed under section 6662(a) with respect to any portion of an
underpayment if it is shown that there was a reasonable cause for
such portion and that the taxpayer acted in good faith with
respect to such portion. The determination of whether a taxpayer
acted with reasonable cause and in good faith depends upon the
facts and circumstances of each particular case. Sec. 1.6664-
4(b)(1), Income Tax Regs. Relevant factors include the
taxpayer's efforts to assess his or her proper tax liability, the
knowledge and experience of the taxpayer, and the taxpayer's
reliance on the advice of a professional, such as an accountant.
See Drummond v. Commissioner, T.C. Memo. 1997-71, affd. in part
and revd. in part without published opinion 155 F.3d 558 (4th
Cir. 1998). However, the most important factor is the extent of
the taxpayer's effort to determine the taxpayer's proper tax
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