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standing alone, is not an absolute defense to negligence; rather,
it is a factor to be considered. Neonatology Associates, P.A. v.
Commissioner, 299 F.3d 221, 234 (3d Cir. 2002) (“the reliance
itself must be objectively reasonable in the sense that the
taxpayer supplied the professional with all the necessary
information to assess the tax matter and that the professional
himself does not suffer from a conflict of interest or lack of
expertise that the taxpayer knew of or should have known about”),
affg. 115 T.C. 43 (2000); Freytag v. Commissioner, supra. In
order to establish that he reasonably relied on competent
professional advice, the taxpayer must show that the adviser had
the expertise and knowledge of the pertinent facts to provide
informed advice on the subject matter.20 David v. Commissioner,
43 F.3d 788, 789-790 (2d Cir. 1995), affg. T.C. Memo. 1993-621;
20Petitioner relies on Thompson v. United States, 223 F.3d
1206 (10th Cir. 2000), to support an argument that a trier of
fact is obligated to accept a taxpayer’s reliance on professional
advice as a defense to the negligence addition to tax under sec.
6653. However, Thompson does not support petitioner’s argument.
In Thompson, the Court of Appeals for the Tenth Circuit upheld a
jury instruction that reasonable, good-faith reliance on a
professional adviser constitutes a defense to the negligence
addition to tax under sec. 6653. The Court of Appeals found that
the instruction was warranted based on (1) the evidence in the
case, which included testimony regarding the adviser’s expertise,
his investigation of the investment and his conclusions
therefrom, and the information he provided the taxpayer; (2) the
professional relationship between the adviser and the taxpayer;
and (3) the rule that a taxpayer may reasonably rely on advice
when that advice involves the application of the adviser’s
relevant expertise. Thompson v. United States, supra at 1210-
1211.
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