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the taxpayer must show that the return preparer was supplied with
all the necessary information and the incorrect return was a result
of the preparer's mistakes. Pessin v. Commissioner, 59 T.C. 473,
489 (1972); sec. 1.6664-4(c)(1)(i), Income Tax Regs.
Although petitioners' C.P.A., Ronald Plante, testified at
trial, he did not state whether he was provided any information with
respect to the SCS consulting fees issue. Under the circumstances,
we hold that Powertex has failed to establish that it furnished Mr.
Plante with necessary and relevant information with regard to the
consulting fees paid to SCS and that the incorrect treatment of this
issue was due to his mistakes. Accordingly, we hold that Powertex
is liable for the section 6662(a) accuracy-related penalty with
regard to the deduction claimed for consulting fees paid to SCS for
the fiscal year ending May 31, 1990, as determined by respondent.
To reflect the foregoing,
Decisions will be entered
under Rule 155.
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