Debra D. McNair - Page 15

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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.            
               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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