Ilija and Branka Mitic - Page 24




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            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.                                                           
                  Based on our examination of the entire record before us, we                          
            find that Mr. Mitic, who listed his occupation in both the 1993                            
            and 1994 joint returns as “Accountant”, has failed to establish                            
            that petitioners are not liable for the years at issue for the                             
            accuracy-related penalties under section 6662(a).10                                        
                  We have considered all of the arguments of Mr. Mitic that                            
            are not discussed herein, and we find them to be without merit                             
            and/or irrelevant.                                                                         
                  To reflect the foregoing and the concessions of the                                  
            parties,11                                                                                 


                  10The amount of the accuracy-related penalty for which                               
            petitioners are liable for each of the years at issue shall be                             
            determined in the Rule 155 computations by taking into account                             
            the concessions of the parties in the first stipulation of                                 
            settled issues filed in this case.                                                         
                  11After Rule 155 computations have been submitted, we shall                          
            grant respondent’s motion and enter a decision with respect to                             
                                                                         (continued...)                





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