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2. Whether Petitioners Relied on Disinterested
Professionals
A taxpayer is not liable for the accuracy-related penalty
under section 6662(a) and (b)(1) if he or she reasonably relied
in good faith on advice of a competent and independent expert or
tax professional who had all the information. See United States
v. Boyle, 469 U.S. 241, 250 (1985); Schwalbach v. Commissioner,
111 T.C. 215, 230 (1998). Petitioners contend that they are not
liable for the accuracy-related penalty under section 6662 for
1995-97 because they made complete disclosures to their
accountants and tax professionals and relied on their advice in
filing the returns. We disagree.
Petitioners bear the burden of proving that they acted with
reasonable cause and in good faith. Higbee v. Commissioner, 116
T.C. 438, 446-449 (2001). Petitioners have not shown that Ms.
Williams from H&R Block, or Mr. Ingram, their C.P.A. at the time,
had all the information needed to prepare petitioners’ returns
for the years in issue. Mrs. King gave H&R Block the total
amounts of sales, purchases, and expenses; she did not give them
supporting documents. We conclude that petitioners’ return
preparers did not have all necessary information.
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