- 47 - the taxpayer gave to the adviser the necessary and accurate information; and the taxpayer actually relied in good faith on the adviser’s judgment. Neonatology Associates, P.A. v. Commissioner, 115 T.C. 43, 99 (2000). We are not convinced that petitioner reasonably relied on his outside accountant in reporting the items in issue. The record does not contain evidence of what specific information petitioner provided the outside accountant. Indeed, it was Ms. Fox who provided the information to the outside accountant. Petitioner has not established that the incorrect returns were the result of advice provided by the outside accountant. Accordingly, we find that petitioner has failed to prove that any portion of his underpayments was due to reasonable cause or that substantial authority existed for his various tax positions. Petitioner also argues that he is protected by the automatic stay provision of 11 U.S.C. sec. 362 (1994) from the accuracy- related penalty for negligence. As a general rule, the filing of a petition in bankruptcy operates to stay the commencement or continuation of any action or proceeding against the debtor. 11 U.S.C. sec. 362(a) (1994). However, 11 U.S.C. sec. 362(b)(9) (1994) provides an exception to the automatic stay for audits conducted by the Government to determine tax liability. We find that petitioner’s involvement in a bankruptcy proceeding did not prevent respondent from determining that petitioner was liablePage: Previous 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 Next
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