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published opinion 940 F.2d 1534 (9th Cir. 1991); sec. 1.6664-
4(b)(1), Income Tax Regs. The taxpayer must advise the preparer
of all facts that are relevant to the tax treatment of an item.
See sec. 1.6664-4(c)(1)(i), Income Tax Regs.; see also Ellwest
Stereo Theatres, Inc. v. Commissioner, T.C. Memo. 1995-610. The
advice must not be based upon unreasonable factual or legal
assumptions. See sec. 1.6664-4(c)(1)(ii), Income Tax Regs.
There is nothing in this record indicating that petitioners
advised the return preparer of all the facts and circumstances
surrounding the expenses claimed. Moreover, petitioner's
recordkeeping was nonexistent. We sustain respondent's
determinations as to the penalties under section 6662(a).
Decision will be entered
for respondent.
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