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Generally, the most important factor is the extent of the
taxpayer’s efforts to evaluate his proper tax liability. Id.
Reliance on the advice of a professional tax adviser does not
necessarily demonstrate reasonable cause and good faith. Id.
The responsibility to file returns and pay tax when due
rests upon the taxpayer and cannot be delegated, and the
taxpayer, generally, must bear the consequences of any negligent
errors committed by his or her agent. Pritchett v. Commissioner,
63 T.C. 149, 173-175 (1974); Ellwest Stereo Theatres, Inc. v.
Commissioner, T.C. Memo. 1995-610.
For a taxpayer to rely reasonably upon advice so as to
negate a section 6662(a) accuracy-related penalty determined by
the Commissioner, the taxpayer must prove by a preponderance of
the evidence that the taxpayer meets all of the following
requirements: (1) The adviser was a competent professional who
had sufficient expertise to justify reliance, (2) the taxpayer
provided necessary and accurate information to the adviser, and
(3) the taxpayer actually relied in good faith on the adviser’s
judgment. See Neonatology Associates, P.A. v. Commissioner, 115
T.C. 43, 99 (2000), affd. 299 F.3d 221 (3d Cir. 2002); Ellwest
Stereo Theatres v. Commissioner, supra.
Petitioner testified that, in the preparation of her tax
return, she submitted “everything” to her C.P.A. Once the return
had been prepared, petitioner signed it without reviewing the
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Last modified: May 25, 2011