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and had signed those returns as preparer; and (2), as discussed,
supra, Mr. Tishler had acted on FIC's behalf in requesting a
private letter ruling in connection with the Recapitalization.
Like Mr. Tishler, Mr. Shillington, a C.P.A., had a longstanding
relationship with FIC at the time of the Recapitalization.
Having prepared FIC's income tax returns and financial statements
since 1959, it is obvious that Mr. Shillington was intimately
familiar with FIC's financial affairs. Moreover, as the
accountant to other Florida-based Burger King franchisees,
Mr. Shillington could draw on his knowledge of industry trends,
averages, and conventions in valuing FIC. In sum, in light of
the expertise of Messrs. Tishler and Shillington, we think that
it was not unreasonable for decedents to rely on their advice not
to file a gift tax return.
That decedents received advice that ultimately proved
erroneous does not alter our conclusion; valuation is an area of
inherent uncertainty. See United States v. Boyle, 469 U.S. at
250. Consequently, we conclude that decedents' failure to file
was due to reasonable cause and do not sustain any portion of
respondent's additions to gift tax under section 6651(a)(1).
2. Negligence
Section 6653(a) provides for an addition to tax of 5 percent
of the underpayment if any part of the underpayment of tax is due
to negligence or intentional disregard of rules or regulations.
For purposes of this section, an underpayment generally can be
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