Kevin P. Osborne - Page 9

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          reliance on a return preparer is not a defense to negligence, and           
          taxpayers retain a duty to file an accurate return and generally            
          are required to review their return before signing it.  E.g.,               
          Metra Chem Corp. v. Commissioner, 88 T.C. 654, 662 (1987).                  
          However, in this case and with respect to these two items on                
          petitioner’s tax returns, petitioner’s reliance was reasonable.             
          Petitioner provided his return preparer with his business                   
          records, and the preparer computed the amounts of the deductions.           
          Petitioner was reasonable in not questioning the preparer’s                 
          classification of some meal and entertainment expenses as                   
          “business promotion” expenses; because of the location of these             
          expenses on the return, the 50 percent limitation was not                   
          obviously applicable.  Petitioner was also reasonable in not                
          questioning the preparer’s classification of the various tax                
          expenses as deductible:  Requiring petitioner to question and               
          research the deductibility of each individual item would render             
          his use of a preparer pointless.  The record does not support               
          respondent’s determination of negligence in this case.                      
               To reflect the foregoing,                                              
                                             Decision will be entered                 
                                        for respondent with respect to the            
                                        deficiencies and for petitioner               
                                        with respect to the penalties.                

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