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underpayment is attributable to negligence or intentional
disregard of rules or regulations. Section 6653(a)(2) provides
for a further addition to tax equal to 50 percent of the interest
due on the portion of the underpayment attributable to negligence
or intentional disregard of rules or regulations. Negligence is
defined to include “any failure to reasonably comply with the Tax
Code, including the lack of due care or the failure to do what a
reasonable or ordinarily prudent person would do under the
circumstances.” Merino v. Commissioner, 196 F.3d 147, 154 (3d
Cir. 1999) (quoting Heasley v. Commissioner, 902 F.2d 380, 383
(5th Cir. 1990)), affg. T.C. Memo. 1997-385.
Petitioners’ primary argument is that they were not
negligent because they relied on advice from Mr. Trimboli and, in
the case of the Bronsons, Ms. DiTommaso. Reasonable reliance on
professional advice may be a defense to the negligence additions
to tax. United States v. Boyle, 469 U.S. 241, 250-251 (1985);
Freytag v. Commissioner, 89 T.C. 849, 888 (1987), affd. 904 F.2d
1011 (5th Cir. 1990), affd. on another issue 501 U.S. 868 (1991).
The advice must be from competent and independent parties, not
from the promoters of the investment. LaVerne v. Commissioner,
94 T.C. 637, 652 (1990), affd. without published opinion sub nom.
Cowles v. Commissioner, 949 F.2d 401 (10th Cir. 1991), affd.
without published opinion 956 F.2d 274 (9th Cir. 1992); Rybak v.
Commissioner, 91 T.C. 524, 565 (1988).
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