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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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