- 55 -
T.C. 473, 487 (1990); Ma-Tran Corp. v. Commissioner, 70 T.C. 158,
173 (1978).
Although not entirely clear, it appears that petitioners are
arguing that they are not liable for the accuracy-related penal-
ties at issue because they sought and received tax advice from
professionals and relied upon such advice in ascertaining the tax
treatment of the disputed property expenses, the Virginia Beach
property depreciation deductions, the legal fees with respect to
the Mitchums Creek property, and the disputed child care expenses
that was reflected in their respective tax returns.
The record establishes that a preparer prepared each of the
following tax returns: Delaware Corporation’s 1994 return,
Delaware Corporation’s 1997 return, Ms. Havens’s 1994 return, Ms.
Havens’s 1995 return, Mr. Barber’s 1994 return, and Mr. Barber’s
1995 return (collectively, returns in question). The only
professional on whom petitioners claim to have relied and who
testified at the trial in these cases was Mr. Braun. No other
professional, including the preparers of the respective returns
in question, testified at trial.
The following colloquy took place on direct examination of
Mr. Braun:
Q What about the tax aspects of the deductions
that the Delaware Corporation could take or would take
as a result of acquiring these properties where they
assumed debt [i.e., the Caroline County farm and the
Virginia Beach property]?
Page: Previous 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 NextLast modified: May 25, 2011