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the extent that the taxpayer shows that the underpayment is due
to the taxpayer’s having reasonable cause and acting in good
faith. Secs. 1.6662-3(a), 1.6664-4(a), Income Tax Regs.
Reasonable cause requires that the taxpayer have exercised
ordinary business care and prudence as to the disputed item.
United States v. Boyle, 469 U.S. 241 (1985); see also Neonatology
Associates, P.A. v. Commissioner, 115 T.C. 43, 98 (2000). The
good faith reliance on the advice of an independent, competent
professional as to the tax treatment of an item may meet this
requirement. United States v. Boyle, supra; sec. 1.6664-4(b),
Income Tax Regs. Whether a taxpayer relies on advice and whether
such reliance is reasonable hinge on the facts and circumstances
of the case and the law applicable thereto. Sec. 1.6664-
4(c)(1)(i), Income Tax Regs. The taxpayer must prove that: (1)
The adviser was a competent professional who had sufficient
expertise to justify reliance, (2) the taxpayer provided
necessary and accurate information to the adviser, and (3) the
taxpayer actually relied in good faith on the adviser’s judgment.
Ellwest Stereo Theatres, Inc. v. Commissioner, T.C. Memo.
1995-610; see also Rule 142(a)(1).
We are unable to conclude that petitioners have met their
burden of proof as to this issue. First, we are unable to find
that petitioners reasonably believed that the fishing activity
was actually a business. Mr. Peacock, a successful
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