David W. Hill - Page 19

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          v. Commissioner, 21 T.C. 678, 687 (1954).  It is possible for               
          reasonable reliance on a competent agent to be a sufficient                 
          defense to fraud.  Davis v. Commissioner, 184 F.2d 86, 88 (10th             
          Cir. 1950), remanding a Memorandum Opinion of this Court.                   
          Generally, such reliance indicates an absence of fraudulent                 
          intent only when the agent has been provided with complete                  
          information and there is no other evidence indicating fraudulent            
          intent.  Merritt v. Commissioner, 301 F.2d 484, 487 (5th Cir.               
          1962), affg. T.C. Memo. 1959-172.                                           
               There are several problems with petitioner's placing the               
          blame for his underpayment of taxes with Mr. Pressley.  First,              
          Mr. Pressley testified that after petitioner informed him of                
          income from Mr. Hall, he advised petitioner to obtain a Form 1099           
          from Mr. Hall.  When petitioner told Mr. Pressley that it would             
          not be possible to obtain the information from Mr. Hall, Mr.                
          Pressley advised petitioner to estimate the amount of payments              
          and file an amended return after receiving the correct                      
          information.  Petitioner chose not to follow this advice and                
          filed his returns showing only the income that he had                       
          documentation for.  Consequently, we do not find that petitioner            
          relied on Mr. Pressley's advice.  Second, petitioner did not                
          provide Mr. Pressley with complete information.  In any event,              
          petitioner failed to tell Mr. Pressley about the amounts                    
          involved.  The unreported payments from Mr. Hall constituted over           
          three times the amount of taxable income reported on petitioner's           

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