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incorrect, should have prompted him to look beyond and ascertain
the accuracy of the representations of his preparer. Petitioner,
therefore, made no effort to assess his correct tax liability.
On this record, the Court sustains respondent on the section
6662(a) accuracy-related penalties for the years in question.
Section 6673(a) authorizes the Court to require a taxpayer
to pay to the United States a penalty not exceeding $25,000 when,
in the Court's judgment, proceedings have been instituted or
maintained by the taxpayer primarily for delay or where the
taxpayer's position in the proceeding is frivolous or groundless.
The Court considers petitioner's claim that he should not be
liable for the deficiencies and penalties to be frivolous and
groundless. Petitioner knew, or should have known, that a
substantial portion of the itemized deductions at issue was false
and could not be sustained. Petitioner knew that he could deduct
only amounts that he had actually paid. He made no attempt to
determine the qualifications of his return preparer and,
moreover, did not seek other professional advice to satisfy the
concerns he had, or should have had, over the returns prepared by
Mr. Beltran. Petitioner cited no legal authority to the Court
that, under similar facts, would exonerate him from the penalties
under section 6662(a).
The function of this Court is to provide a forum to decide
issues relating to liability for Federal taxes. Any reasonable
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Last modified: May 25, 2011