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information included a copy of the Partnership's lease for the
leased space. Respondent disallowed the investment tax credits
claimed by the taxpayers in Eubanks and imposed the additions to
tax under section 6653(a)(1) and (2) because of, inter alia, the
taxpayers' respective underpayments attributable to such claimed
credits. In contrast to respondent's position in the present
case, respondent did not contend in Eubanks v. Commissioner,
supra, that the tax return preparers should have further investi-
gated the leasing transaction at issue in that case. Moreover,
unlike the instant case where respondent does not contend that
there was some document or other information that petitioners
withheld from Mr. Amsterdam, in Eubanks respondent contended that
the taxpayers must be found negligent because they did not show
that they gave their return preparers a copy of the Partnership's
lease for the leased space and that they therefore did not
establish that they provided their return preparers with complete
information, as required to avoid the imposition of the additions
to tax for negligence. We found in the Eubanks case that the
taxpayers were not liable for the additions to tax for negligence
that were attributable to the claimed investment tax credits
because they reasonably relied on the advice of professional tax
return preparers on a tax matter that was not "self-evident". In
so holding, we found that the Partnership's lease was not fa-
cially relevant to the investment tax credits claimed in the
taxpayers' returns and that to require them to have had the level
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Last modified: May 25, 2011