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further addition to tax in an amount equal to 50 percent of the
interest payable with respect to the portion of the underpayment
that is attributable to negligence or intentional disregard of
rules or regulations.
Negligence is defined as a lack of due care or failure to do
what a reasonable and prudent person would do under similar
circumstances. Allen v. Commissioner, 925 F.2d 348, 353 (9th
Cir. 1991), affg. 92 T.C. 1 (1989). Under certain circumstances,
a taxpayer may avoid the additions to tax for negligence by
showing that he or she reasonably relied on the advice of a
competent professional. Freytag v. Commissioner, 89 T.C. 849,
888 (1987), affd. 904 F.2d 1011 (5th Cir. 1990), affd. 501 U.S.
868 (1991). However, a taxpayer bears the responsibility for any
negligent errors of his or her professional adviser. See Ameri-
can Properties, Inc. v. Commissioner, 28 T.C. 1100, 1116-1117
(1957), affd. per curiam 262 F.2d 150 (9th Cir. 1958). Reliance
on a professional adviser, standing alone, is not an absolute
defense to negligence; it is only one factor to be considered.
Freytag v. Commissioner, supra at 888. In order for reliance on
a professional adviser to excuse a taxpayer from the additions to
tax for negligence, the taxpayer must establish that the profes-
sional adviser on whom he or she relied had the expertise and
knowledge of the relevant facts to provide informed advice on the
subject matter. See id.
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