Jose Torres - Page 6

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                    taxpayer's effort to assess his proper tax liability.                                                                                                  
                    Stubblefield v. Commissioner, T.C. Memo. 1996-537; sec. 1.6664-                                                                                        
                    4(b)(1), Income Tax Regs.                                                                                                                              
                              Taxpayers are required to keep records sufficient to                                                                                         
                    establish the amount of deductions or other matters required to                                                                                        
                    be shown on their returns.  Sec. 6001; sec. 1.6001-1(a), Income                                                                                        
                    Tax Regs.  Failure to maintain adequate records may constitute                                                                                         
                    negligence.  Schroeder v. Commissioner, 40 T.C. 30, 34 (1963).                                                                                         
                              Generally the duty of filing an accurate return cannot be                                                                                    
                    avoided by placing responsibility upon a third party.  Metra Chem                                                                                      
                    Corp. v. Commissioner, 88 T.C. 654, 662 (1987); Fortner v.                                                                                             
                    Commissioner, T.C. Memo. 1993-195.  Reliance on the advice of a                                                                                        
                    qualified adviser may demonstrate reasonable cause and good                                                                                            
                    faith; however, the evidence must show that the taxpayer                                                                                               
                    contacted a competent tax adviser and provided the adviser with                                                                                        
                    all the necessary and relevant information.  See Jackson v.                                                                                            
                    Commissioner, 86 T.C. 492, 539-540 (1986), affd. 864 F.2d 1521                                                                                         
                    (10th Cir. 1989); sec. 1.6664-4(b)(1), Income Tax Regs.                                                                                                
                              Petitioner's reliance on Robinson v. Commissioner, 51 T.C.                                                                                   
                    520 (1968), affd. in part and vacated in part per curiam 422 F.2d                                                                                      
                    873 (9th Cir. 1970), and other similar cases is misplaced.  In                                                                                         
                    Robinson, this Court sustained respondent's disallowance of                                                                                            
                    various expenses for failure to comply with section 274 and the                                                                                        
                    accompanying regulations but, nonetheless, held that the taxpayer                                                                                      
                    was not liable for the addition to tax for negligence under                                                                                            




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