Alfred E. Gallade - Page 23

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          issued a Notice of Sufficiency to GCI in accordance with its                
          first application.                                                          
               The most important factor in determining whether petitioner            
          acted in a reasonable manner and in good faith is the extent to             
          which he attempted to determine his proper income tax liability.            
          Mailman v. Commissioner, supra at 1084.  Reliance on the advice             
          of professionals is tantamount to acting in a reasonable manner             
          if “under all the circumstances, such reliance [is] reasonable              
          and the taxpayer acted in good faith.”  Sec. 1.6661-6(b), Income            
          Tax Regs.; see also Vorsheck v. Commissioner, 933 F.2d 757, 759             
          (9th Cir. 1991); Shelton v. Commissioner, 105 T.C. 114, 125                 
          (1995); Nestle Holdings, Inc. v. Commissioner, supra.                       
               On the basis of these facts, we find that petitioner did act           
          as an ordinarily prudent person in the circumstances.                       
          Accordingly, his reliance on the advice of his hired                        
          professionals was reasonable and in good faith.  Therefore, we              
          hold that respondent abused her discretion by failing to waive              
          this penalty.  Accordingly, we hold that petitioner is not liable           
          for the section 6661 addition to tax.  See, e.g., Nestle                    
          Holdings, Inc. v. Commissioner, supra (holding that it was                  
          unreasonable in that case to penalize a taxpayer for relying on             
          the advice of a professional or for not prevailing in this                  
               Citing Reinke v. Commissioner, 46 F.3d 760, 765 (8th Cir.              
          1995), affg. T.C. Memo. 1993-197, respondent argues that                    

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