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everything was fine. He told us that everybody should be
getting money back from the IRS. If you didn't, whoever
would prepare them didn't prepare them right, your returns.
He convinced us that everything was fine.
He told us that there were limits that you could go up
to, not to get in trouble with, not to do anything wrong
with. He made sure that we were okay, that we asked him,
you know, how is this going to come out later on? Are we
going to get in trouble? What's going to happen?
This is, you know, we weren't sure either. We didn't
understand it. We were confused, too. And he made sure
that everything was right. He made sure of it.
Section 6662(a) provides for an accuracy-related penalty
equal to 20 percent of any portion of an underpayment of tax
required to be shown on the return that is attributable to the
taxpayer's negligence or disregard of rules or regulations. Sec.
6662(a) and (b)(1). Negligence consists of any failure to make a
reasonable attempt to comply with the provisions of the Internal
Revenue Code and disregard consists of any careless, reckless, or
intentional disregard. Sec. 6662(c). The courts have refined
the Code definition of negligence as a lack of due care or
failure to do what a reasonable and prudent person would do under
similar circumstances. Allen v. Commissioner, 925 F.2d 348, 353
(9th Cir. 1991), affg. 92 T.C. 1 (1989). Section 1.6662-3(b)(1),
Income Tax Regs., provides that "Negligence is strongly indicated
where * * * a taxpayer fails to make a reasonable attempt to
ascertain the correctness of a deduction * * * on a return which
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