Robert E. and Yvonne R. Kovacevich - Page 12

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          reasonable cause for the underpayment and that the taxpayer acted           
          in good faith.  The determination of whether a taxpayer acted               
          with reasonable cause and in good faith depends upon the facts              
          and circumstances.  See sec. 1.6664-4(b)(1), Income Tax Regs.               
          Reliance on the advice of an accountant may demonstrate                     
          reasonable cause and good faith.  See id.  Petitioners contend              
          that they relied in good faith on the advice of Moe, but                    
          petitioners did not provide Moe with accurate information (e.g.,            
          mischaracterizing payments made by Western to various creditors             
          of petitioners as loans instead of wages).  Under such                      
          circumstances, reliance on an accountant's advice is not in good            
          faith and does not establish that the taxpayer acted with                   
          reasonable cause.  See Paula Constr. Co. v. Commissioner, 58 T.C.           
          1055, 1061 (1972), affd. without published opinion 474 F.2d 1345            
          (5th Cir. 1973).  Moreover, petitioner is an experienced tax                
          lawyer who manipulated income received from Western.  Petitioner            
          did not exercise due care in the filing of his return and thus is           
          liable for the section 6662(a) penalty.  Welch v. Helvering, 290            
          U.S. 111, 115 (1933).                                                       
               Contentions we have not addressed are irrelevant, moot, or             
          meritless.                                                                  











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