Mildred I. Criss, et al. - Page 18




                                       - 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).                                                                     






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011