Bill L. and Nancy L. Turner - Page 10




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          one who decided to place the $499.98 on Schedule E.  Furthermore,           
          Mr. Turner testified and a letter dated April 30, 1997, from Mr.            
          Strand confirmed that petitioners deducted the loss on the sale             
          of the Belair property on their 1994 tax return based on Mr.                
          Strand’s advice that petitioners had converted the Belair                   
          property to business property and the loss on the sale was a                
          business loss.                                                              
               We think the foregoing circumstances meet the standard                 
          established in United States v. Boyle, supra at 251, where the              
          Supreme Court stated:  “When an accountant or attorney advises a            
          taxpayer on a matter of tax law, such as whether a liability                
          exists, it is reasonable for the taxpayer to rely on that                   
          advice.”  We conclude that petitioners made a reasonable effort             
          to obtain advice with respect to the tax treatment of their sale            
          of the Belair property, and therefore they are not liable for the           
          section 6662(a) penalty.                                                    
               To reflect the foregoing,                                              
                                                  Decision will be entered            
                                             for respondent as to the                 
                                             deficiency and the addition              
                                             to tax pursuant to section               
                                             6651(a)(1), and for                      
                                             petitioners as to the penalty            
                                             pursuant to section 6662.                






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