-24-
that petitioners are not liable for the accuracy-related penalty
as it relates to this portion of the underpayment.
The other items on petitioners’ returns for the years at
issue are not accorded the same treatment. These other non-lemon
farming activity items, including the abusive trust items, were
not considered in the prior audit. Petitioners have not shown a
genuine effort to assess their proper tax liability, nor have
they shown that they relied on the advice of a professional with
respect to these items. See sec. 1.6664-4(b)(1), Income Tax
Regs. Petitioners have not shown they acted with reasonable
cause and in good faith with respect to these non-lemon farming
activity items, and, accordingly, they are liable for the
accuracy-related penalty on the portion of the underpayment
attributable to these items.
To reflect the foregoing and the concessions of the parties,
Decision will be entered
under Rule 155.
Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Last modified: May 25, 2011