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burden of production. Petitioners have the burden of proving
that the accuracy-related penalty does not apply.
The accuracy-related penalty under section 6662(a) does not
apply to any portion of an underpayment, however, if a taxpayer
shows that there was reasonable cause for, and that the taxpayer
acted in good faith with respect to, that portion. Sec.
6664(c)(1); sec. 1.6664-4(b), Income Tax Regs. Generally, the
responsibility to file accurate returns and pay tax when due
rests upon the taxpayer and cannot be delegated; the taxpayer may
have to bear the consequences of any negligent errors committed
by his or her agent. Pritchett v. Commissioner, 63 T.C. 149,
173-175 (1974); Am. Props., Inc. v. Commissioner, 28 T.C. 1100,
1116-1117 (1957), affd. 262 F.2d 150 (9th Cir. 1958).
The determination of whether the taxpayers acted with
reasonable cause and in good faith depends on the pertinent facts
and circumstances, including the taxpayer’s efforts to assess his
or her proper tax liability, the knowledge and experience of the
taxpayers, and the reliance on the advice of the professional.
Sec. 1.6664-4(b)(1), Income Tax Regs. Reasonable cause has been
found when a taxpayer selects a competent tax adviser, supplies
the adviser with all relevant information, and, consistent with
ordinary business care and prudence, relies on the adviser’s
professional judgment as to the taxpayer’s tax obligations. Sec.
6664(c); United States v. Boyle, 469 U.S. 241, 250-251 (1985);
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