Michael White - Page 4

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               At trial, petitioner conceded the deficiencies, challenging            
          only the penalties under section 6662(a).  In addition to                   
          considering that issue, the Court also considers the                        
          applicability of section 6673(a) to the facts of this case.                 
               Petitioner was gainfully employed for the 2 years at issue             
          as a paramedic firefighter for one of the counties in New Mexico.           
               Prior to the years at issue, petitioner prepared his own               
          Federal income tax returns.  For the 2 years in question, someone           
          recommended that petitioner employ a return preparer, Robin                 
          Beltran.  The individual who recommended Mr. Beltran represented            
          that Mr. Beltran was a "great guy", who was a "CPA", and "really            
          knows his stuff, is willing to show you the stuff in the tax laws           
          that show you all the loopholes, and he can certainly save you a            
          lot of money."  Petitioner arranged to engage the services of Mr.           
          Beltran for his 1998 Federal income tax returns and for 2 years             
          thereafter.  For the initial year, 1998, petitioner presented to            
          Mr. Beltran the same type documentation petitioner maintained for           
          the years in which petitioner prepared his own returns.  That               
          documentation appeared to be for charitable contributions and               
          employee expenses.  Mr. Beltran advised petitioner that such                
          records were not necessary because, irrespective of records, a              
          taxpayer, under the law, was "allowed" certain amounts as                   
          deductions for such expenses.                                               

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