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only those Schedules C showing net profits.
On the record before us, we find that petitioner's reliance
on Mr. McVeigh with respect to the erroneous calculation of
petitioner's self-employment income for 1989 (i.e., not
aggregating all Schedules C of petitioner's 1989 return) was
reasonable and in good faith. Consequently, we reject respon-
dent's determination imposing the accuracy-related penalty on the
portion of the underpayment for that year that is attributable to
that error.39
Erroneous Use of the 25-Percent
Limit for 1989 and 1991
We have found that Mr. McVeigh advised petitioner to use the
25-percent limit, rather than the 15-percent limit. Except for
petitioner's (1) informing Mr. McVeigh in April 1990 that he had
established a retirement plan to which he timely contributed
$20,000 and (2) relating to him the conversations that he had had
with the individual who had assisted him in establishing that
plan, the record does not show what petitioner told Mr. McVeigh
about the contributions that he made to a retirement plan for
1989 and 1991. Specifically, we do not know whether petitioner
advised Mr. McVeigh that the retirement plan that he had estab-
lished was a simplified employee pension.
On the record before us, we find that petitioner has failed
39 Mr. McVeigh's error resulted in petitioner's claiming a
deduction that exceeded by $5,075 25 percent of the aggregate
results shown in the Schedules C of his 1989 return.
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