Daniel C. Greer and Winnie L. Greer - Page 17

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              Our task is to determine the applicability of additions to              
         tax.  Petitioners have the burden of proof.  Because a remittance            
         petitioners made in December 1992 was repaid by Order of the                 
         District Court of the Eastern District of Kentucky, there is a               
         related issue concerning the amounts of the deficiencies in income           
         tax to which the addition to tax under section 6653(a)(2) would              
         apply, if we determine that additions to tax under section                   
         6653(a)(1) and (2) should apply at all.                                      
              Section 6653(a)(1) imposes an addition to tax equal to 5                
         percent of the underpayment if any part of the underpayment of tax           
         is due to negligence or intentional disregard of rules or                    
         regulations.  An additional amount is added under section                    
         6653(a)(2), equal to 50 percent of the interest payable with                 
         respect to the portion of the underpayment attributable to                   
              Negligence is defined as the failure to exercise the due care           
         that a reasonable and ordinarily prudent person would exercise               
         under the circumstances.  Marcello v. Commissioner, 380 F.2d 499,            
         506 (5th Cir. 1967), affg. in part and remanding in part 43 T.C.             
         168 (1964) and T.C. Memo. 1964-299.  The reasonableness of a                 
         particular taxpayer’s actions is viewed in light of the taxpayer’s           
         experience, the nature of the investment, and the taxpayer’s                 
         actions regarding the transaction.  Henry Schwartz Corp. v.                  

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