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provision as applied to the relevant facts. See sec. 1.6662-
4(d)(3)(ii), Income Tax Regs. There may be substantial authority
for more than one position with respect to the same item. See
sec. 1.6662-4(d)(3)(i), Income Tax Regs.
The accuracy-related penalty under section 6662(a) does not
apply to any portion of an underpayment if it is shown that there
was reasonable cause for such portion and that the taxpayer acted
in good faith. See sec. 6664(c)(1). The determination of
whether a taxpayer acted with reasonable cause and in good faith
depends on the pertinent facts and circumstances, including the
taxpayer’s efforts to assess his or her proper tax liability, the
knowledge and experience of the taxpayer, and the reliance on the
advice of a professional, such as an accountant. See sec.
1.6664-4(b)(1), Income Tax Regs. In the case of claimed reliance
on the accountant who prepared the taxpayer’s tax return, the
taxpayer must establish that correct information was provided to
the accountant and that the item incorrectly claimed or reported
in the return was the result of the accountant’s error. See Ma-
Tran Corp. v. Commissioner, 70 T.C. 158, 173 (1978).
On the instant record, we reject petitioner’s contention
that respondent’s determination under section 6662(a) is wrong
because “there is no underpayment of tax”. We have held on that
record that petitioner is not entitled to deduct for the year at
issue the claimed royalty expense. Consequently, petitioner has
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