- 9 - Commissioner, 51 T.C. 467, 475 (1968); sec. 1.6664-4(b)(1) and (2), Example (1), Income Tax Regs. To show good faith reliance, the taxpayer must show that the return preparer was supplied with all the necessary information and the incorrect return was the result of the preparer's mistakes. Pessin v. Commissioner, 59 T.C. 473, 489 (1972); Enoch v. Commissioner, 57 T.C. 781, 803 (1972). Petitioner retained a certified public accountant to prepare his 1992 return and advise him as to the deductibility of the payments made to or on behalf of his former spouse pursuant to the Judgment. Tomlin had been petitioner's accountant for 16 years, and petitioner relied on him to complete the return accurately. Petitioner supplied Tomlin with all of the records in his possession pertaining to the payments to his former spouse, including the Judgment. In addition, petitioner spoke with Indictor, an attorney and former employee of the IRS, about the deductibility of the payments several times before completing his 1992 return. Based on this record, even though we have found that petitioner's reliance on Tomlin and Indictor was misplaced, we find that petitioner acted with reasonable cause and good faith in attempting to comply with the provisions of the Internal Revenue Code. We hold, therefore, that petitioner is not liable for the section 6662(a) accuracy-related penalty determined by respondent. See Rosenthal v. Commissioner, T.C. Memo. 1995-603; Conway v. Commissioner, T.C. Memo. 1994-405.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011