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Respondent’s determination is presumed correct, and
petitioners have the burden of proving otherwise. See Rule
142(a); Hall v. Commissioner, 729 F.2d 632, 635 (9th Cir. 1984),
affg. T.C. Memo. 1982-337; Neely v. Commissioner, supra at 947;
Bixby v. Commissioner, 58 T.C. 757, 791-792 (1972). Petitioners’
contention that they are not liable for the section 6662(a)
penalty is rooted in section 6664(c)(1), which provides, in
pertinent part, that the section 6662(a) penalty shall not be
imposed with respect to any portion of an underpayment if a
taxpayer shows that there was a reasonable cause for such portion
and that the taxpayer acted in good faith with respect to such
portion.
Generally, the responsibility to file returns and pay tax
when due rests upon the taxpayer and cannot be delegated; the
taxpayer must bear the consequences of any negligent errors
committed by his or her agent. See Pritchett v. Commissioner, 63
T.C. 149, 173-175 (1974); American Properties, Inc. v.
Commissioner, 28 T.C. 1100, 1116-1117 (1957), affd. 262 F.2d 150
(9th Cir. 1958). An exception to this rule arises when a
taxpayer selects a competent tax adviser, supplies the adviser
with all relevant information, and, consistent with ordinary
business care and prudence, relies on the adviser’s professional
judgment as to the taxpayer’s tax obligations. See sec. 6664(c);
United States v. Boyle, 469 U.S. 241, 250-251 (1985); Estate of
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Last modified: May 25, 2011