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with reasonable cause and in good faith. Sec. 6664(c)(1). The
decision as to whether the taxpayer acted with reasonable cause and
in good faith depends upon all the pertinent facts and
circumstances. Sec. 1.6664-4(b)(1), Income Tax Regs. Relevant
factors include the taxpayer’s efforts to assess his proper tax
liability, including the taxpayer’s reasonable and good faith
reliance on the advice of a professional such as an accountant.
Id. Further, an honest misunderstanding of fact or law that is
reasonable in light of the experience, knowledge, and education of
the taxpayer may indicate reasonable cause and good faith. See
Furnish v. Commissioner, T.C. Memo. 2001-286; Remy v. Commissioner,
T.C. Memo. 1997-72.
At trial, petitioner testified that he provided his
accountants (Accufast for 1993 and 1994, and J.E. & Assoc. for
1995) with all of his business records, receipts, and check stubs.
In this regard, petitioner testified:
I had an accountant that takes care of all this
stuff, so I really don’t understand it, don’t know what
it is. You know, he had all the records and took care of
all that stuff, as far as what the rent was and how much
was paid, and the materials, supplies and stuff. * * * As
far as * * * the charges and stuff * * * he had the
records, the check stubs and all that, and he figured out
what was there * * *.
Petitioner further testified that he tried to obtain his
business records and any substantiating documentation from Accufast
for 1993 and 1994 but was told that clients’ records were not
retained after 5 years. Moreover, petitioner stated that upon
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