James G. and Linda C. Jaroff - Page 18

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          to assess his or her proper tax liability.  Id.  Under some                 
          circumstances, reasonable cause may be established when a                   
          taxpayer shows that he or she reasonably relied on the advice of            
          an independent and competent tax professional.  United States v.            
          Boyle, 469 U.S. 241, 250-251 (1985); Weis v. Commissioner, 94               
          T.C. 473, 487 (1990); Peete v. Commissioner, T.C. Memo. 2004-31;            
          sec. 1.6664-4(b)(1), Income Tax Regs.                                       
               We do not believe that petitioners have satisfied their                
          burden of proof in regard to the reasonable cause exception.  As            
          stated earlier, while we have given careful consideration to the            
          arguments set forth by petitioners’ counsel, Mr. Morford, we                
          cannot overlook petitioners’ failure to appear at trial and                 
          provide testimony on the facts underlying their participation in            
          the Hoyt cattle operation and the reasonableness behind the                 
          underpayments of tax on their income tax returns for 1994 and               
               The limited facts that are part of the record do not support           
          a finding that petitioners acted with reasonable cause and in               
          good faith.  Petitioners were college-educated professionals who            
          must have realized that the overall benefits they received from             
          their investment in the Hoyt cattle operation were simply “too              
          good to be true”.  Although they were not associated with the               
          Hoyt cattle operation until October 1995, petitioners claimed               
          $184,000 in cattle losses on their 1994 income tax return.                  

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