Edward R. Stolz II - Page 6




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          $22,009 was deducted on the return, and depreciation of $1,645.50           
          was allowed as a deduction based on the audit.  Wages of $236,903           
          are shown on the return; payroll of $231,793.87 is listed on the            
          reconstruction.  Rent of $160,306 was reported; rent of                     
          $141,297.03 was included in the adjusted expense amounts.  Only             
          advertising expenses of $3,600 correspond precisely in the two              
          computations.                                                               
                                       OPINION                                        
               We must decide whether petitioner is liable for either the             
          delinquency addition to tax or the accuracy-related penalty in              
          connection with the filing and content of his 1995 Federal income           
          tax return, or for both.                                                    
               Petitioner contends that the stipulations entered by the               
          parties constitute a full settlement of all issues in exchange              
          for the payment of an additional tax of $17,823 for 1995.  To               
          determine supplemental sums under sections 6651 and 6662 is                 
          therefore, in petitioner’s view, a violation of the settlement              
          agreement.  Petitioner also asserts that his reliance on a                  
          certified public accountant to prepare and file his return                  
          establishes reasonable cause excusing him from responsibility for           
          any untimeliness or inaccuracies.                                           
               Conversely, respondent argues that petitioner’s alleged                
          reliance on his tax preparer fails to satisfy the standard of               
          reasonable cause necessary to relieve petitioner from either the            






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