Sanford M. and Sally Kirshenbaum - Page 21




                                       - 20 -                                         
          required to be shown on the return was $12,338.  Therefore,                 
          petitioner understated his income tax in an amount greater than             
          $5,000 or 10-percent of the tax required to be shown on his                 
          return.                                                                     
               Petitioner did not present any evidence or make any showing            
          as to why respondent’s penalty determination is in error.                   
          Petitioner contends that he is not liable for the accuracy-                 
          related penalty because he had a reasonable basis for the tax               
          items at issue and because he relied on the advice of a                     
          representative of Fidelity Investments.  Given petitioner’s legal           
          education and experience, petitioner did not have a reasonable              
          basis for the tax items at issue, especially in the absence of              
          substantiating records.  Moreover, petitioner’s purported                   
          reliance on a financial representative was not reasonable nor               
          prudent.  See sec. 1.6662-4(c), Income Tax Regs.                            
               The facts and circumstances of this case support the                   
          imposition of an accuracy-related penalty under section 6662(a)             
          and (b)(2).  Accordingly, we sustain respondent’s determination             
          on this issue.                                                              
               E.  Conclusion                                                         
               We have considered all of the other arguments made by the              
          parties, and, to the extent that we have not specifically                   
          addressed them, we conclude they are without merit.                         








Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011