Craig V. Adams - Page 14

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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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