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file a tax return when their stores earned hundreds of thousands
of dollars a year. Even if their accountant did make such a
statement, it would not have been reasonable for petitioners to
rely in good faith upon such an erroneous suggestion. Although a
taxpayer may have "reasonable cause" when relying on an
accountant concerning questions of law, "The failure to make a
timely filing of a tax return is not excused by the taxpayer's
reliance on an agent, and such reliance is not 'reasonable cause'
for a late filing under �6651(a)(1)." Id. at 252 (Brennan, J.,
concurring); see also Church of Scientology v. Commissioner,
supra at 1310. Accordingly, we find that petitioners did not
have reasonable cause for their failure to file timely tax
returns, and that they are liable for these additions to tax
under section 6651(a)(1).
D. Additions to Tax Under Section 6653(a)(1)(A) and (B)
Respondent further determined that petitioners' underpayment
of their 1986, 1987, and 1988 tax is attributable to negligence.
For 1986 and 1987, section 6653(a)(1)(A) imposes an addition to
tax equal to 5 percent of the underpayment if any part of the
underpayment is attributable to negligence, and section
6653(a)(1)(B) imposes an addition to tax equal to 50 percent of
the interest payable on the portion of the underpayment
attributable to negligence. For 1988, section 6653(a) imposes an
addition to tax equal to 5 percent of the portion of the
underpayment that is attributable to negligence.
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