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Inasmuch as we hold that section 162(e) is dispositive of
the issue, we need not address petitioner's contentions that the
claimed expenses represent either Schedule C business expenses or
Schedule A unreimbursed employee business expenses. Respondent
is sustained on this issue.
2. Accuracy-Related Penalty
Section 6662(a) imposes an accuracy-related penalty equal to
20 percent of the portion of any underpayment of tax that is due
to negligence or disregard of rules or regulations. Under
section 6662(c), negligence is any failure to make a reasonable
attempt to comply with the provisions of the Code, and the term
"disregard" includes any careless, reckless, or intentional
disregard. Negligence includes the failure to exercise the due
care of a reasonable and ordinarily prudent person under the
circumstances. See Allen v. Commissioner, 925 F.2d 348, 353 (9th
Cir. 1991), affg. 92 T.C. 1 (1989); Neely v. Commissioner, 85
T.C. 934, 947 (1985).
Petitioner contends that he is not liable for the section
6662(a) accuracy-related penalty because he relied on erroneous
expert advice given by his tax preparer. When an expert provides
erroneous advice on a matter of tax law, such as whether a tax
liability exists, it may be reasonable for a taxpayer to rely on
that advice. See United States v. Boyle, 469 U.S. 241, 250-251
(1985).
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