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D. Whether Petitioner Is Liable for Accuracy-Related
Penalties for 1993 and 1994
Respondent determined that petitioner is liable for
accuracy-related penalties for negligence under section 6662(a)
for 1993 and 1994.
Taxpayers are liable for a penalty under section 6662 equal
to 20 percent of the part of the underpayment which is
attributable to negligence. See sec. 6662(a). For purposes of
section 6662(a), negligence is a failure to make a reasonable
attempt to comply with the Internal Revenue Code. See sec.
6662(c). The accuracy-related penalty under section 6662(a) does
not apply to any part of an underpayment if the taxpayer shows
that there was reasonable cause for that part of the underpayment
and that the taxpayer acted in good faith based on the facts and
circumstances. See sec. 6664(c)(1). A taxpayer may establish
that he or she had reasonable cause and was not negligent under
section 6662(a) by proving that he or she reasonably relied in
good faith on the advice of a competent, independent expert or
tax professional possessed of all the information. See United
States v. Boyle, 469 U.S. 241, 250 (1985); Leonhart v.
Commissioner, 414 F.2d 749, 750 (4th Cir. 1969), affg. T.C. Memo.
1968-98; Ewing v. Commissioner, 91 T.C. 396, 423 (1988), affd.
without published opinion 940 F.2d 1534 (9th Cir. 1991).
Petitioner contends that he is not liable under section
6662(a) because he relied on Chisum. We disagree. Chisum claims
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