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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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