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negligently with respect to the underpayments of tax required to
be shown on petitioners’ returns. See Pelton & Gunther v.
Commissioner, T.C. Memo. 1999-339; Estate of Holland v.
Commissioner, T.C. Memo. 1997-302 (positions taken on return not
reasonable in light of the fact that one of the executors was an
experienced attorney). Furthermore, petitioners failed to
maintain adequate books and records from which their Federal
income tax liability could be established. See Sowards v.
Commissioner, T.C. Memo. 2003-180; Brodsky v. Commissioner, T.C.
Memo. 2001-240; sec. 1.6662-3(b)(1), Income Tax Regs. After
careful consideration of all pertinent facts and circumstances,
we find that petitioners did not act with reasonable cause and in
good faith and that the underpayments of tax required to be shown
on their returns are due to petitioners’ negligence. Respondent
is sustained on this issue.
Reviewed and adopted as the report of the Small Tax
Division.
To reflect the foregoing,
Decision will be
entered under Rule 155.
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Last modified: May 25, 2011