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copies of supporting documents. He did not, however, offer
either the hard copies or any underlying documents into evidence.
He also did not indicate which, if any, supporting documents were
provided to Mr. McConnaughy in connection with the 1995 return.
Consequently, petitioner has not established that correct
information was supplied to his accountant or that the incorrect
return resulted from Mr. McConnaughy’s error.
In addition, the fact that a majority of the substantiated
expense amounts differ from those claimed on the 1995 return
would seem to make the possibility that petitioner supplied
insufficient or ambiguous data to the accountant more likely.
Furthermore, petitioner’s failure to examine or discuss with Mr.
McConnaughy the contents of the return weighs against finding his
reliance reasonable. He appears to have made only minimal
efforts to self-assess his proper tax liability.
We therefore conclude that petitioner has not established
reasonable cause for the inaccuracies in his 1995 return and is
liable for the section 6662(a) penalty. Respondent’s
determinations are therefore sustained as to both the section
6651(a) addition to tax and the section 6662(a) accuracy-related
penalty.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011