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Here, Ms. Burkes' situation was very complex in that her
1990 reporting year contained a transitional situation where the
amount reportable was changing and the amounts that were or were
not reportable were subject to some doubt. In this situation,
Ms. Burkes reasonably relied on her attorney and the accountant
selected for her by the attorney. There were substantial legal
questions as to which of the numerous items were reportable as
alimony. These circumstances made it reasonable for Ms. Burkes
to rely on the advice of the two professionals involved. We
conclude that Ms. Burkes was therefore not negligent within the
meaning of section 6662 for her 1990 taxable year.
On brief, Mr. Burkes did not make any argument concerning
respondent's determination concerning the section 6662(a)
penalties. We treat this omission as a concession that, to the
extent not conceded by respondent, Mr. Burkes is liable for the
section 6662(a) penalties as determined.
To reflect the foregoing and to account for agreements and
concessions of the parties,
Decisions will be entered
under Rule 155.
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