- 18 - noted that many of the records were relinquished in a bankruptcy proceeding and some of the records were not recovered from their accountant. The Court determined that the taxpayers were not liable for the negligence penalty. Petitioners argue that they "made repeated attempts to retrieve all records and receipts from their accountant, who died Dec. 1996." Petitioners' 1992 and 1993 returns were prepared by Bernadette Henderson of Green's Tax Service, and petitioners' amended 1993 return was prepared by Lee Green of Green's Tax Service. Petitioners did not testify on their own behalf to describe the circumstances in regard to the preparation of the returns, and they did not call anyone involved with Green's Tax Service. Instead, in closing arguments, Mr. Bundridge described their reliance on their accountant Lee Green. However, there is no evidence in the record to support petitioners' conclusion that their good faith reliance on the accountant constituted reasonable cause. Therefore, we sustain respondent's determinations with respect to the penalties for 1992 and 1993. To reflect the foregoing, An order will be issued granting respondent's motion, and a decision will be entered under Rule 155.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Last modified: May 25, 2011