Estate of H.A. True, Jr. - Page 257

                                       - 324 -                                        
          any property claimed on the return is 25 percent or less of the             
          amount determined to be the correct value.  See sec. 6662(h).               
              Section 6664 provides an exception to the imposition of                 
          accuracy-related penalties if the taxpayer shows that there was             
          reasonable cause for the understatement and that the taxpayer               
          acted in good faith.  See sec. 6664(c); see also United States v.           
          Boyle, 469 U.S. 241, 242 (1985).  Whether a taxpayer acted with             
          reasonable cause and in good faith is a factual question.  See              
          sec. 1.6664-4(b), Income Tax Regs.  Generally, the most important           
          factor is the extent to which the taxpayer exercised ordinary               
          business care and prudence in attempting to assess his or her               
          proper tax liability.  See Estate of Simplot v. Commissioner, 112           
          T.C. 130, 183 (1999) (citing Mandelbaum v. Commissioner, T.C.               
          Memo. 1995-255), revd. on another issue 249 F.3d 1191 (9th Cir.             
          2001); sec. 1.6664-4(b), Income Tax Regs.                                   

Page:  Previous  314  315  316  317  318  319  320  321  322  323  324  325  326  327  328  329  330  331  332  333  Next