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delinquency addition or the accuracy-related penalty. Hence,
respondent contends that petitioner is liable for these sums
because his return was filed subsequent to the due date and
contained understatements which were both substantial and
negligent.
We conclude that the stipulations entered by the parties do
not preclude respondent from determining the additions or
penalties at issue here. We further agree with respondent that
the untimeliness of and understatements in petitioner’s return
are not excused by reliance on a tax preparer and justify
imposing the delinquency addition and the accuracy-related
penalty.
General Considerations
As a threshold matter, we first address petitioner’s
contention that to determine any additional sums or penalties
violates the stipulations entered by the parties. This position,
however, is not supported by the record. The document in which
petitioner agreed to the additional tax of $17,823 for 1995, the
Joint Status Report signed by both parties on August 25, 1998,
expressly states that “The parties have been unable to resolve
whether petitioner is liable for the delinquency penalty under
section 6651(a) and the accuracy-related penalty under section
6662(a) for tax year 1995.” The status report then concludes:
“The parties request that this case be set for trial to resolve
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