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subject to self-employment tax under section 1401 and that the
Friscias may deduct one-half of the self-employment tax paid under
section 164(f).
Issue 4. Negligence Accuracy-Related Penalty for 1994 and 1995
Section 6662(a) imposes a penalty in an amount equal to 20
percent of the underpayment of tax attributable to one or more of
the items set forth in section 6662(b). Section 6662(b)(1)
applies an accuracy-related penalty to the portion of an
underpayment attributable to negligence or disregard of rules or
regulations. The Friscias bear the burden of proving that
respondent’s determination is erroneous. See Rule 142(a); Axelrod
v. Commissioner, 56 T.C. 248, 258-259 (1971). Negligence includes
any failure to make a reasonable attempt to comply with the
Internal Revenue Code. See sec. 6662(c). Such negligence may be
excused if it is found that the taxpayer acted with reasonable
cause and in good faith with respect to the underpayments. See
id.
Reliance on professional advice alone is not an absolute
defense to negligence but rather a factor to be considered. See
Froehlich v. Commissioner, T.C. Memo. 1996-487. In order for
reliance on professional advice to excuse a taxpayer from the
negligence penalty, the taxpayer must show that the professional
had the expertise and the knowledge of the pertinent facts to
provide competent advice on the subject matter. See Goldman v.
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