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Helvering, 290 U.S. 111, 115 (1933); Bixby v. Commissioner, 58
T.C. 757, 791 (1972).
Section 6662(a) imposes a penalty of 20 percent of the
portion of the underpayment of tax attributable to the taxpayer’s
negligence, disregard of rules or regulations, or substantial
understatement of income tax. Sec. 6662(a), (b)(1) and (2).
Negligence is defined as 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 any failure to make a reasonable
attempt to comply with the law. Sec. 6662(c); sec. 1.6662-
3(b)(1), Income Tax Regs. Section 1.6662-3(b)(1), Income Tax
Regs., provides that negligence is strongly indicated where “A
taxpayer fails to make a reasonable attempt to ascertain the
correctness of a deduction, credit or exclusion on a return which
would seem to a reasonable and prudent person to be ‘too good to
be true’ under the circumstances”. “Disregard” has been
described as any careless, reckless, or intentional disregard.
Sec. 6662(c).
Section 6664(c)(1) provides that the penalty under section
6662(a) shall not apply to any portion of an underpayment if
it is shown that there was reasonable cause for the taxpayer’s
position with respect to that portion and that the taxpayer acted
in good faith with respect to that portion. The determination of
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