- 21 -
petitioners are not liable for the penalty pursuant to section
6662(a) for the years 1993 and 1994.
With respect to 1995, petitioner asserts that his reliance on
J.E. & Assoc. was reasonable. We disagree. Petitioner asserted
that the figures reflected on petitioners’ 1995 tax return were
“blown out of proportion”. Petitioner testified that although it
was “possible” to have gross receipts and expenses in amounts as
reflected on petitioners’ 1993 and 1994 returns, with respect to
petitioners’ 1995 return, “jumping up another half a million
dollars in one more year, it’s impossible.” Additionally,
petitioner testified that he never examined the 1995 tax return
until recently. The 1995 return was signed by petitioners on
November 18, 1996. Petitioner stated that his attorney was
“handling most of it until him [his attorney] and I parted ways”.
The colloquy set forth below exemplifies petitioner’s testimony on
this matter:
THE COURT: * * * When you saw the return-–I know
that you have an accountant prepare–-
MR. PRATT: I never saw this return until just
recently.
THE COURT: Why not?
MR. PRATT: My attorney was handling most of it
until him and I parted ways.
THE COURT: Yes, but we’re talking about ‘95.
MR. PRATT: Yes.
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011