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Petitioner’s withdrawal of his request for a letter ruling
upon learning that it would be adverse does not suggest he
exercised good faith. The bona fides of his claim of reliance on
Mrs. Roco, who held (and holds) a responsible tax law enforcement
position with New York State, is undermined by the fact that she
did not act consistently with what she told him; i.e., she filed
separately for 1997, unlike their practice for prior years.
We conclude that petitioner did not act in good faith in
claiming that the 1997 qui tam payment was nontaxable, and that
he is liable for the accuracy-related penalty under section
6662(a).
To reflect the foregoing,
Decision will be entered for
respondent.
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