- 44 - affg. T.C. Memo. 1993-634; Weis v. Commissioner, 94 T.C. 473, 487 (1990); Ma-Tran Corp. v. Commissioner, 70 T.C. 158, 173 (1978). Petitioner did not testify that he supplied Mr. Fuller, who prepared the returns for 1991 and 1992, with complete and accurate information or that the incorrect reporting of the disputed items was a result of the preparer's mistakes. Additionally, Mr. Fuller did not testify that the incorrect reporting of the items adjusted by respondent was a result of his mistakes.16 Moreover, with respect to the deductions claimed for wage expense, medical plan expenses, and IRA contributions, the record fails to show that either petitioner or Mr. Fuller engaged in any factual or legal analysis to determine whether Mrs. Haeder qualified as petitioner’s employee. Petitioners, therefore, have failed to establish that the underpayment for the years in issue resulted from their good faith reliance on the advice of their tax preparer. Accordingly, petitioners have failed to carry their burden, and we sustain respondent’s determination as to the accuracy-related penalties. Accuracy-Related Penalties for Substantial Understatements of Tax Respondent determined that for 1989, 1990, and 1993 petitioners were liable for accuracy-related penalties under 16Although Mr. Fuller testified at trial that he incorrectly reported commissions refunded in 1990 in connection with petitioner’s investment in Floating Point stock and overstated dividend income in 1992, these items either are not at issue in this case or do not affect adversely to petitioners the calculation of the deficiencies.Page: Previous 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Next
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