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circumstances. The most important factor is the extent of the
taxpayer's effort to assess the proper tax liability.
Stubblefield v. Commissioner, T.C. Memo. 1996-537; sec. 1.6664-
4(b)(1), Income Tax Regs. Under section 1.6664-4(b)(1), Income
Tax Regs., "Circumstances that may indicate reasonable cause and
good faith include an honest misunderstanding of fact or law that
is reasonable in light of all of the facts and circumstances,
including the experience, knowledge, and education of the
taxpayer." Moreover, a taxpayer is generally charged with
knowledge of the law. Niedringhaus v. Commissioner, 99 T.C. 202,
222 (1992). Although a taxpayer is not subject to the addition
to tax for negligence where the taxpayer makes honest mistakes in
complex matters, the taxpayer must take reasonable steps to
determine the law and to comply with it. Id.
Under certain circumstances, a taxpayer may avoid the
accuracy-related penalty for negligence where the taxpayer
reasonably relied on the advice of a competent professional.
Sec. 1.6664-4(b)(1), Income Tax Regs.; see sec. 6664(c); Freytag
v. Commissioner, 89 T.C. 849, 888 (1987), affd. 904 F.2d 1011
(5th Cir. 1990), affd. 501 U.S. 868 (1991). However, reliance on
a professional adviser, standing alone, is not an absolute
defense to negligence; it is only one factor to be considered.
In order for reliance on a professional adviser to relieve a
taxpayer from the negligence penalty, the taxpayer must establish
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