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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.; 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 that the
professional adviser on whom he or she relied had the expertise
and knowledge of the relevant facts to provide informed advice on
the subject matter. Freytag v. Commissioner, supra at 888.
Petitioners made no effort to ascertain the professional
background and qualifications of their return preparer, Mr.
Beltran. They did not review the returns prepared by Mr.
Beltran. Petitioners clearly did not make a reasonable effort to
determine whether their returns were accurate. Petitioners made
no effort to contact other tax professionals to verify the
accuracy of the returns prepared by Mr. Beltran. The Court is
satisfied from the record that Mr. Beltran knew, or had reason to
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