- 57 -
T.C. 686, 699 (1988), affd. 893 F.2d 656 (4th Cir. 1990). The
term "disregard" includes any careless, reckless, or intentional
disregard of the Code and the temporary or final regulations is-
sued thereunder. Sec. 6662(c); sec. 1.6662-3(b)(2), Income Tax
Regs.
The accuracy-related penalty under 6662(a) does not apply to
any portion of an underpayment if it is shown that there was a
reasonable cause for such portion and that the taxpayer acted in
good faith with respect to such portion. Sec. 6664(c)(1). The
determination of whether the taxpayer acted with reasonable cause
and in good faith depends upon the pertinent facts and circum-
stances. Sec. 1.6664-4(b)(1), Income Tax Regs. Factors taken
into account include the taxpayer's efforts to assess his or her
proper tax liability and the knowledge and experience of the
taxpayer. Id. Reliance on the advice of a professional, such
as an accountant, does not necessarily demonstrate reasonable
cause and good faith unless, under all the circumstances, such
reliance was reasonable and the taxpayer acted in good faith.
Id.
Petitioners' underpayment for each of the years at issue
results partially from their having used the reported losses from
petitioner's rental activity at Crestwood to offset nonpassive
income.28 Petitioners claim that petitioner is not a tax spe
28 Petitioners challenge respondent's determinations imposing
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