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in preparing his 1991 return. Such reliance, petitioner claims,
is evidence that he acted with reasonable cause and in good
faith.
Reliance on "professional" advice will constitute reasonable
cause only if the taxpayer acted in good faith and made full
disclosure of all relevant facts to the adviser. See Paula
Constr. Co. v. Commissioner, 58 T.C. 1055, 1061 (1972), affd.
without published opinion 474 F.2d 1345 (5th Cir. 1973).
Petitioner admitted at trial that, when he called the hotline, he
did not explain that the equipment was being leased or that no
income was being reported from the activity in 1991. Petitioner
did not make full disclosure so that his alleged reliance on the
hotline is reasonable cause. Petitioner failed to keep adequate
records to substantiate his entitlement to deductions that he
claimed. Sec. 6001; Crocker v. Commissioner, 92 T.C. 899, 912
(1989); sec. 1.6001-1, Income Tax Regs.
Petitioner's whole case is based on inconsistencies and
improbabilities and lacks credibility. Petitioner has not
established reasonable cause or good faith reliance to excuse him
from the penalty for negligence or intentional disregard of rules
or regulations.
To reflect the foregoing and a concession of petitioner,
Decision will be entered
for respondent.
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