John R. Hernandez - Page 14




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               An exception applies to the accuracy-related penalty when              
          the taxpayer demonstrates (1) there was reasonable cause for the            
          underpayment, and (2) he acted in good faith with respect to such           
          underpayment.  Sec. 6664(c).  Whether the taxpayer acted with               
          reasonable cause and in good faith is determined by the relevant            
          facts and circumstances.  The most important factor is the extent           
          of the taxpayer’s effort to assess his proper tax liability.                
          Stubblefield v. Commissioner, T.C. Memo. 1996-537; sec. 1.6664-             
          4(b)(1), Income Tax Regs.  Section 1.6664-4(b)(1), Income Tax               
          Regs., specifically provides: “Circumstances that may indicate              
          reasonable cause and good faith include an honest                           
          misunderstanding of fact or law that is reasonable in light of              
          * * * the experience, knowledge, and education of the taxpayer.”            
          See Neely v. Commissioner, 85 T.C. 934 (1985).                              
               It is the taxpayer’s responsibility to establish that he is            
          not liable for the accuracy-related penalty imposed by section              
          6662(a).  Rule 142(a); Tweeddale v. Commissioner, 92 T.C. 501,              
          505 (1989).  Petitioner did not address this issue at trial.                
          Petitioner claimed deductions that he failed to explain or                  
          substantiate.  Petitioner is an accountant who presumably should            
          be familiar with the provisions of the Internal Revenue Code                
          applicable to his case; yet he did not follow the applicable law            
          in preparing his Federal income tax returns.  On the basis of the           
          entire record, we conclude petitioner has not established that              






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