Zinovy Brodsky - Page 71




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          Ma-Tran Corp. v. Commissioner, 70 T.C. 158, 173 (1978).                      
               Petitioner contends that he is not liable for the accuracy-             
          related penalty under section 6662(a) because he relied on Mr.               
          Sutton, who prepared the joint returns of petitioner and Ms.                 
          Brodsky for 1991 and 1992, and on Mr. DiBernardo, who prepared               
          their joint return for 1993, to whom he provided all of his                  
          financial information.  On the instant record, we reject that                
          contention.  On that record, we find that petitioner has failed              
          to carry his burden of establishing (1) that he provided correct             
          and complete information to Mr. Sutton and Mr. DiBernardo in                 
          connection with their return preparation on his behalf and                   
          (2) that any item incorrectly omitted, claimed, or reported in               
          the joint returns for the years at issue was the result of the               
          error of one of those return preparers.  On the instant record,              
          we also find that petitioner failed to maintain adequate books               
          and records and to substantiate properly items claimed on the                
          joint returns for the years at issue.                                        
               On the record before us, we find that petitioner has failed             
          to carry his burden of showing (1) that the underpayment for each            
          of the years at issue was not due to negligence or disregard of              
          rules or regulations and (2) that he acted with reasonable cause             
          and in good faith with respect to the underpayment for each of               
          those years.  On that record, we find that petitioner has failed             
          to carry his burden of establishing that he is not liable for                
          each of the years at issue for the accuracy-related penalty under            
          section 6662(a).                                                             






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