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lacking substance); Mitchell v. Commissioner, T.C. Memo. 2001-269
(lawyer-accountant held liable for accuracy-related penalty for
deducting farm losses with no credible plan to make profit);
Emerson v. Commissioner, T.C. Memo. 2001-186 (lawyer liable for
accuracy-related penalty for failing to keep adequate records
required by section 6001).
Petitioner has been a tax return preparer since at least
1990. Between 1993 and 1995, he prepared at least 500 tax
returns and was paid for his services. Given petitioner's
experience in preparing tax returns and his knowledge that
petitioners were previously held liable for omitting income and
failing to substantiate expenses, this Court concludes that he
failed to act with reasonable cause and in good faith in
determining his tax liability. See Wilkerson v. Commissioner,
T.C. Memo. 1998-68 (C.P.A. and wife, experienced return preparers
who failed to report fees and other income, were held liable for
negligence penalty). The Court holds that petitioners are liable
for the accuracy-related penalties under section 6662(a).
Reviewed and adopted as the report of the Small Tax Case
Division.
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