William F. Middleton - Page 16




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         adequate books and records or to substantiate items properly.                
         See sec. 6662(c); sec. 1.6662-3(b)(1), Income Tax Regs.                      
         “Disregard” has been categorized as any careless, reckless, or               
         intentional disregard.  Sec. 6662(c).                                        
               A taxpayer may avoid the accuracy-related penalty by showing           
         that (1) there was reasonable cause for the underpayment and (2)             
         he acted in good faith with respect to such underpayment.  See               
         sec. 6664(c).  Whether the taxpayer acted with reasonable cause              
         and in good faith is determined by the relevant facts and                    
         circumstances, and most importantly, the extent to which he                  
         attempted to assess his proper tax liability.  See Neely v.                  
         Commissioner, 85 T.C. 934 (1985); Stubblefield v. Commissioner,              
         T.C. Memo. 1996-537; sec. 1.6664-4(b)(1), Income Tax Regs.                   
               It is petitioner’s responsibility to establish that he is              
         not liable for the accuracy-related negligence penalty imposed by            
         section 6662(a).  See Rule 142(a); Tweeddale v. Commissioner, 92             
         T.C. 501, 505 (1989).                                                        
               In attempting to show that he had reasonable cause,                    
         petitioner argues that he relied on his accountant who assisted              
         him in preparing his 1991 return.  Under certain circumstances,              
         reliance on the advice of a competent adviser can be a defense to            
         the accuracy-related penalty.  United States v. Boyle, supra at              
         252); Zfass v. Commissioner, 118 F.3d 184 (4th Cir. 1997); sec.              
         1.6664-4(b)(1), Income Tax Regs.                                             
               However, reliance on professional advice, standing alone, is           




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