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Commissioner, T.C. Memo. 1998-38. Respondent's determination as
to the addition to tax under section 6651(a)(1) for 1992 is
sustained.
Respondent also determined that petitioners are liable for
accuracy-related penalties under section 6662(a) for 1991 and
1992 for negligence. Section 6662(a) provides that "there shall
be added to the tax an 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 the 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).
Respondent determined the accuracy-related penalties under
section 6662(a) for 1991 and 1992 based on petitioner's failure
to review carefully the availability of the claimed losses from
EBS.
Petitioners claim they employed a new accountant to compute
their 1991 and 1992 Federal income taxes. In some circumstances
reliance upon a qualified return preparer may alleviate a
taxpayer's liability for penalties. See sec. 1.6664-4(b)(1),
Income Tax Regs.; see also Ewing v. Commissioner, 91 T.C. 396,
423-424 (1988), affd. without published opinion 940 F.2d 1534
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