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demonstrate a taxpayer acted with reasonable cause and in good
faith. Neonatology Associates, P.A. v. Commissioner, 115 T.C.
43, 98-99 (2000), affd. 299 F.2d 221 (3d Cir. 2002); Freytag v.
Commissioner, 89 T.C. 849, 888 (1987), affd. 904 F.2d 1011 (5th
Cir. 1990), affd. 501 U.S. 868 (1991); see sec. 1.6664-4(c)(1),
Income Tax Regs. However, a taxpayer’s reliance upon the advice
of a professional does not automatically constitute reasonable
cause. Neonatology Associates v. Commissioner, supra at 98-99;
see sec. 1.6664-4(c)(1), Income Tax Regs. For a taxpayer to
reasonably rely on the advice of a professional, the taxpayer
must show: (1) The adviser was a competent professional who had
sufficient expertise to justify reliance; (2) the taxpayer
provided necessary and accurate information to the adviser; and
(3) the taxpayer actually relied in good faith on the adviser’s
judgment. Neonatology Associates v. Commissioner, supra at 98-
99.
Petitioner testified he relied on his accountant, Mr.
Beauregard, to prepare his return, and Mr. Beauregard had
prepared his returns since 1993 without incident. However,
petitioner did not call Mr. Beauregard as a witness, nor did he
introduce evidence which would establish that Mr. Beauregard
possessed the requisite expertise.8 Because petitioner has not
8 Petitioner did not begin his gambling activity until
2002, and his underpayment of tax arose from claimed deductions
(continued...)
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