- 152 -
Petitioners rely on Rev. Rul. 75-191, 1975-1 C.B. 376, to
support their position that the penalty is not applicable.
Petitioners' reliance is misplaced because Rev. Rul. 75-191
addresses employee and employee Federal Insurance Contributions
Act (FICA) and income taxes, which are not in issue here.
Petitioners argue further that "the facts and law were
sufficiently doubtful that there was reasonable cause for MDT's
failure to withhold, and MDT relied on the advice of C&L."
As we concluded earlier, the facts and law were not
sufficiently doubtful as to petitioners' obligation to withhold.
Petitioners misrepresented the facts and disregarded the rules,
the regulations and the advice of C&L's Florida office. The
preponderance of the evidence supports the conclusion that
petitioners' failure to withhold and deposit was not due to
reasonable cause. See Ellwest Stereo Theaters v. Commissioner,
T.C. Memo. 1995-610. Accordingly, respondent's determination as
to this issue is sustained.
To reflect the foregoing and concessions of the parties,
Decisions will be entered
under Rule 155.
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