Donald DeCleene and Doris DeCleene - Page 33

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          careless, reckless, or intentional disregard.  See id.                      
          Negligence is the failure to exercise due care or the failure to            
          act as a reasonable and prudent person.  See Neely v.                       
          Commissioner, 85 T.C. 934, 947 (1985).                                      
               No penalty is imposed for negligence or intentional                    
          disregard of rules or regulations or a substantial understatement           
          of income if the taxpayer shows that the underpayment is due to             
          reasonable cause and the taxpayer’s good faith.  See sec.                   
          6664(c); secs. 1.6662-3(a), l.6664-4(a), Income tax Regs.                   
               Reasonable cause requires that the taxpayer have exercised             
          ordinary business care and prudence as to the disputed item.  See           
          United States v. Boyle, 469 U.S. 241 (1985); see also Estate of             
          Young v. Commissioner, 110 T.C. 297, 317 (1998).  The good faith,           
          reasonable reliance on the advice of an independent, competent              
          professional as to the tax treatment of an item may meet this               
          requirement.  See United States v. Boyle, supra; sec. 1.6664-               
          4(b), Income Tax Regs.; see also Richardson v. Commissioner, 125            
          F.3d 551 (7th Cir. 1997), affg. T.C. Memo. 1995-554; Ewing v.               
          Commissioner, 91 T.C. 396, 423 (1988), affd. without published              
          opinion 940 F.2d 1534 (9th Cir. 1991).                                      
               Whether a taxpayer relies on advice and whether such                   
          reliance is reasonable depend on the facts and circumstances of             
          the case and the law that applies to those facts and                        
          circumstances.  See sec. 1.6664-4(c)(i), Income Tax Regs.  A                
          professional may render advice that may be relied upon reasonably           

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