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years ended 1987 through 1989, that LTD is liable as a
withholding agent for withholding tax on the dividend it paid to
its shareholders in calendar years 1985 and 1986, and that INC is
not liable as a withholding agent for withholding tax. Pursuant
to Emmons v. Commissioner, supra, we hold that LTD’s failure to
file timely income tax returns for taxable years ended June 30,
1987 through 1989 and LTD’s failure to file withholding tax
returns for calendar years 1985 and 1986 are prima facie cases of
negligence. Petitioners have not come forward with sufficient
evidence; i.e., they have not "overcome" or "put in equilibrium"
such a prima facie case. Id. at 349, and the cases cited
therein. As to LTD, petitioners did not proffer evidence tending
to meet or to rebut respondent's prima facie cases of negligence.
Consequently, we sustain respondent's determinations that LTD, as
to its corporate income tax returns for taxable years ended June
30, 1987 through 1989, and its withholding tax returns for
calendar years 1985 and 1986, was negligent.
As to INC's income tax returns and Holdings' income tax
returns, petitioners contend that reliance upon experienced
advisers relieves them from the addition to tax for negligence.
Petitioners, however, have not provided sufficient evidence to
prove that such reliance was reasonable. Ewing v. Commissioner,
supra; Freytag v. Commissioner, supra. Consequently, we sustain
respondent's determination of section 6653 additions to tax for
INC and Holdings.
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