Charles R. and Dru L. Haggart - Page 8

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          alia, that the taxpayer provided necessary and accurate                     
          information to the adviser.  See, e.g., Rule 142(a); Ellwest                
          Stereo Theatres of Memphis, Inc. v. Commissioner, T.C. Memo.                
               Although the record is silent concerning Mr. Poltonowicz’s             
          qualifications, we are willing to assume that he was a competent            
          professional.  Petitioners did not establish, however, that they            
          supplied Mr. Poltonowicz with the necessary documentation to                
          substantiate the costs of goods sold and the disallowed                     
          deductions.  See Johnson v. Commissioner, 74 T.C. 89, 97 (1980),            
          affd. 673 F.2d 262 (9th Cir. 1982).  Indeed, there was no such              
          documentation.  In sum, we find petitioners did not reasonably              
          rely on the advice of their accountant.                                     
          Relief From Joint and Several Liability                                     
               We initially note that Mrs. Haggart requests relief only               
          from the self-employment tax liabilities imposed as a result of             
          Mr. Haggart’s business.  When, as here, a joint return is filed,            
          the liability for the self-employment tax of one spouse is a                

          5  Petitioners have not argued that either sec. 7491(a) or (c)              
          applies to this case to shift the burden of proof and/or                    
          production.  Sec. 7491 applies to court proceedings arising from            
          examinations commencing after July 22, 1998.  Internal Revenue              
          Service Restructuring & Reform Act of 1998 (RRA), Pub. L. 105-              
          206, sec. 3001, 112 Stat. 726.  It would appear that the                    
          examination for 1997 commenced after that date.  With regard to             
          the burden of proof under sec. 7491(a), petitioners have not                
          satisfied the requirements of that section.  Under sec. 7491(c)             
          respondent has the burden of production with respect to the sec.            
          6662(a) penalties and respondent has satisfied that burden.                 

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