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attempt to comply with the provisions of the Internal Revenue
Code and includes any failure by the taxpayer to keep adequate
books and records or to substantiate items properly. Sec.
6662(c); sec. 1.6662-3(b)(1), Income Tax Regs. “Disregard”
includes any careless, reckless, or intentional disregard. Sec.
6662(c).
The accuracy-related penalty does not apply to any portion
of an underpayment of tax if it is shown that there was
reasonable cause for such portion and that the taxpayer acted in
good faith. Sec. 6664(c)(1). The determination of whether a
taxpayer acted in good faith is made on a case-by-case basis,
taking into account all the pertinent facts and circumstances.
Sec. 1.6664-4(b)(1), Income Tax Regs. Good faith reliance on an
accountant may in some circumstances satisfy the reasonable cause
and good faith exception. 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. Where a taxpayer does
not exercise due care in filing her returns and does not review
the returns prior to filing, the fact that the returns were
prepared by an accountant is no defense to the imposition of the
section 6662(a) penalties. Sandoval v. Commissioner, T.C. Memo.
2001-310, affd. 67 Fed. Appx. 252 (5th Cir. 2003).
In this case it is clear that petitioner did not exercise
due care in the filing of her returns. Petitioner did not review
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