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and in good faith depends upon all the pertinent facts and
circumstances. Sec. 1.6664-4(b)(1), Income Tax Regs. Relevant
factors include the taxpayer's efforts to assess his proper tax
liability, including the taxpayer’s reasonable and good faith
reliance on the advice of a professional such as an accountant.
See id. Further, an honest misunderstanding of fact or law that
is reasonable in light of the experience, knowledge, and
education of the taxpayer may indicate reasonable cause and good
faith. See Remy v. Commissioner, T.C. Memo. 1997-72.
It is clear from the record that petitioner is an
unsophisticated taxpayer who relied reasonably and in good faith
on his accountant. Consequently, we conclude that for the years
in issue petitioner had reasonable cause and acted in good faith
as to any underpayment resulting from the deductions in issue.
Accordingly, we hold that petitioner is not liable for the
penalty pursuant to section 6662(a).
To reflect the foregoing,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011