- 18 -
do under the circumstances. Leuhsler v. Commissioner, 963 F.2d
907, 910 (6th Cir. 1992), affg. T.C. Memo. 1991-179; Antonides v.
Commissioner, 91 T.C. 686, 699 (1988), affd. 893 F.2d 656 (4th
Cir. 1990).
The accuracy-related penalty under section 6662(a) does not
apply to any portion of an underpayment if it is shown that there
was reasonable cause for, and that the taxpayer acted in good
faith with respect to, such portion. Sec. 6664(c)(1). The
determination of whether the taxpayer acted with reasonable cause
and in good faith depends on the pertinent facts and circum-
stances, including the taxpayer’s efforts to assess his or her
proper tax liability, the knowledge and experience of the tax-
payer, and the reliance on the advice of a professional, such as
an accountant. Sec. 1.6664-4(b)(1), Income Tax Regs. Reliance
on the advice of a professional, such as an accountant, does not
necessarily demonstrate reasonable cause and good faith unless,
under all the circumstances, such reliance was reasonable and the
taxpayer acted in good faith. Id. In the case of claimed
reliance on the accountant who prepared the taxpayer’s tax
return, the taxpayer must establish that correct information was
provided to the accountant and that the item incorrectly omitted,
claimed, or reported in the return was the result of the accoun-
tant’s error. Ma-Tran Corp. v. Commissioner, 70 T.C. 158, 173
(1978).
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