David E. Jackson - Page 9

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            rules or regulations.  Sec. 6662(c); sec. 1.6662-3(b)(2), Income                              
            Tax Regs.                                                                                     
                  However, section 6664(c)(1) provides that the penalty under                             
            section 6662(a) shall not apply to any portion of an                                          
            underpayment, if it is shown that there was reasonable cause for                              
            the taxpayer's position with respect to that portion and that the                             
            taxpayer acted in good faith with respect to that portion.  Sec.                              
            6664(c)(1).  The determination of whether a taxpayer acted with                               
            reasonable cause and in good faith within the meaning of section                              
            6664(c)(1) is made on a case-by-case basis, taking into account                               
            all the pertinent facts and circumstances.  Sec. 1.6664-4(b)(1),                              
            Income Tax Regs.  The most important factor is the extent of the                              
            taxpayer's effort to assess his proper tax liability for the                                  
            year.  Id.  Reliance by the taxpayer on the advice of a qualified                             
            adviser will constitute reasonable cause and good faith, if,                                  
            under all of the facts and circumstances, the reliance by the                                 
            taxpayer was reasonable and the taxpayer acted in good faith.                                 
            Id.                                                                                           
                  Petitioner had his 1992 Federal return prepared by a paid                               
            tax preparer and electronically timely filed based on information                             
            provided by petitioner.  There is no evidence before us that                                  
            petitioner's negligence was a result of his reasonable reliance                               
            on a qualified adviser.  At trial, petitioner made no attempt to                              
            substantiate the amounts disallowed as required by section 6001.                              
            Furthermore, petitioner's testimony was vague and inconsistent.                               




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