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tax liability. Beard v. Commissioner, T.C. Memo. 1995-41; sec.
1.6664-4(b)(1), Income Tax Regs.
The record in this case amply demonstrates negligence in the
preparation of petitioner's 1993 and 1994 income tax returns.
For example, petitioner failed to report any rental income in
1993, and he underreported a significant percentage of rental
income in 1994. However, the fact remains that petitioner's 1993
and 1994 income tax returns were prepared by a commercial
service. We therefore, analyze whether this fact relieves
petitioner from liability, in whole or in part, for any penalty.
As a general rule, the duty of filing accurate tax returns
cannot be avoided by placing responsibility on an agent. Metra
Chem Corp. v. Commissioner, 88 T.C. 654, 662 (1987); Pritchett v.
Commissioner, 63 T.C. 149, 174 (1974). However, a taxpayer may
avoid the accuracy-related penalty by showing that his reliance
on the advice of a professional, such as a commercial return
preparer, was reasonable and in good faith. Sec. 1.6664-4(b)(1),
Income Tax Regs. Specifically, the taxpayer must establish that
complete and correct information was provided to the return
preparer and that the item incorrectly claimed or reported on the
return was the result of the preparer's error. See Ma-Tran Corp.
v. Commissioner, 70 T.C. 158, 173 (1978). A taxpayer's reliance
on the advice of a preparer is not reasonable or in good faith
where a cursory review of the taxpayer's return would reveal an
omission from income. Metra Chem Corp. v. Commissioner, supra.
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