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amount equal to 20 percent of the portion of the underpayment to
which this section applies." Section 6662 applies to "the
portion of any underpayment which is attributable to", inter
alia, negligence or disregard of rules or regulations. Sec.
6662(b)(1). Negligence "includes any failure to make a
reasonable attempt to comply with the provisions * * * [of the
Internal Revenue Code], and the term 'disregard' includes any
careless, reckless, or intentional disregard." Sec. 6662(c).
Petitioners essentially contend that they were not negligent
because they relied on Cody & Co. to prepare their returns. Mr.
Stone testified that they were prompted to use Cody & Co.
because: "We found things that we probably could be able to--to
deduct, you know. I don't--wouldn't necessarily say they're
grey, but I think most of the CPAs * * * don't do a thorough job.
They're not ready to push a little bit."
In differentiating between personal and business expenses,
there may be some "grey" areas, but the expenditures here do not
fall within those areas, at least not without a Herculean effort
of delusion. The claimed expenses here, as noted by the Montana
State Tax Appeal Board, are clearly personal living expenses of
petitioners.
Moreover, while reliance on advice may provide a defense to
negligence, it must be shown that the person rendering the advice
was competent to give that advice and that the taxpayer provided
him with requisite information. See Freytag v. Commissioner, 89
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