- 91 -
Commissioner, 857 F.2d 1383, 1386 (9th Cir. 1988), affg. Dister
v. Commissioner, T.C. Memo. 1987-217. The record fails to
disclose what specifically the accountant was told or was not
told by NITCO and Mr. Mussman.
Although reliance on the advice of qualified professional
advisers may defeat a finding of negligence under certain
circumstances, petitioners have not established that the reliance
in the instant cases was reasonable. Freytag v. Commissioner, 89
T.C. 849, 888 (1987), affd. 904 F.2d 1011 (5th Cir. 1990), affd.
501 U.S. 868 (1991).
Petitioners generally have failed to carry their burden in
establishing that all or parts of their respective underpayments
were not attributable to negligence. Rule 142(a).
We hold that NITCO is liable for additions to tax for
negligence (1) under section 6653(a)(1)(A) and (B), for 1987 and
1988, and (2) under section 6662 for 1989. The section 6662
addition applies with respect to that part of the $117,547
portion of the underpayment for 1989 that respondent determined
to be attributable to negligence or intentional disregard of
rules or regulations, which we have sustained. We further hold
that NITCO will be liable for an addition to tax under section
6653(a)(1)(B) for 1987 with respect to the portion of the
underpayment for 1987 attributable to NITCO's improper deduction
of certain legal expenses.
Similarly, we hold that the Mussmans are liable for
additions to tax for negligence (1) under section 6653(a) for
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