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independent contractor, he therefore could not be a statutory
employee. See sec. 3121(d)(3); Lickiss v. Commissioner, T.C.
Memo. 1994-103.
Respondent also determined penalties for negligence under
section 6662(a) for the years in issue. Section 6662(a) provides
that, if the section applies, there is imposed a penalty in an
amount equal to 20 percent of the portion of the underpayment.
The penalty applies, inter alia, to an underpayment due to
negligence or disregard of the rules or regulations. See sec.
6662(b)(1). The term “disregard” includes “any careless,
reckless, or intentional disregard.” Sec. 6662(c). Negligence
includes “any failure to make a reasonable attempt to comply”.
Id.
We do not understand respondent’s argument that petitioner’s
conduct falls within the “disregard” ambit of section 6662(b)(1).
We focus, therefore, on whether petitioner’s actions constituted
negligence.
A good faith reliance on advice from a qualified accountant
can be a defense to the accuracy-related penalty for negligence
in certain circumstances. See Schwalbach v. Commissioner, 111
T.C. 215, 230 (1998). Petitioner must establish that the adviser
was qualified, that he supplied all relevant information, and
that he relied on the advice in good faith. Id. These
requirements are satisfied here.
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