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advice on the subject matter. Freytag v. Commissioner, supra at
888.
Petitioner knew that the charitable contribution and
employee business expense deductions claimed on his returns were
false. There is no evidence that the deductions claimed on the
returns were based upon any documentary evidence submitted by
petitioner. Petitioner admitted in his testimony that the
charitable contributions deducted on the returns were based on an
"average" determined by the return preparer.
Petitioner made no effort to ascertain the professional
background and qualifications of his return preparer, nor did he
make any effort to determine whether the representations of Mr.
Beltran were correct. He did not consult other tax professionals
to verify the accuracy of the returns prepared by Mr. Beltran or
the representations he made regarding the deductions claimed.
The Court is satisfied from the record that Mr. Beltran knew, or
had reason to know, all the relevant facts upon which, had he
been a qualified professional, he could have accurately advised
petitioner on the amount of his allowable deductions. Mr.
Beltran claimed unrealistic and false amounts as deductions on
petitioner's returns. The Court is satisfied that petitioner
knew he was required under the law to substantiate deductions
claimed on his returns. The amounts claimed as deductions on the
returns, which petitioner knew were not substantiated and were
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