-33- we understand petitioner to argue that it relied upon the advice of competent professionals that the disputed amounts were not wages. We disagree. In order for petitioner to rely reasonably upon professional advice so as possibly to negate any or all of the additions to tax at issue, petitioner must prove by a preponderance of evidence each prong of the following 3-prong test: (1) The adviser was a competent professional who had sufficient expertise to justify reliance, (2) petitioner provided necessary and accurate information to the adviser, and (3) petitioner actually relied in good faith on the adviser’s judgment. Neonatology Associates, P.A. v. Commissioner, 115 T.C. 43, 99 (2000), affd. 299 F.3d 221 (3d Cir. 2002). Petitioner has not proven any of these prongs. We sustain respondent’s determination as to the applicability of the additions to tax. In their computation (or computations) under Rule 155, the parties shall determine these additions to tax taking into account (1) respondent’s concession as to the other workers and (2) that the Form 941 for the taxable quarter ended December 31, 1996, was timely filed. _____________________________________ 13(...continued) petitioner’s reliance on that opinion to be misplaced. We note that Spicer Accounting, Inc. v. United States, 918 F.2d 90, 93 (9th Cir. 1990), one of the principal cases upon which we rely to decide the substantive issue, was decided by the Court of Appeals for the Ninth Circuit.Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Next
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