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reasonable cause and good faith. Secs. 6662(d)(2)(B),
6664(c)(1).
Under section 7491(c), respondent has the burden of
production with respect to a section 6662 accuracy-related
penalty. Once respondent meets that burden of production,
however, the taxpayer continues to have the burden of proof with
regard to whether respondent’s determination of the penalty is
correct. Rule 142(a); Higbee v. Commissioner, 116 T.C. 438, 446
(2001).
As a result of our holdings herein, petitioner, on his 1997
individual Federal income tax return, understated his tax by more
than $5,000 and also by more than 10 percent of the tax required
to be shown. Respondent has met his burden of production with
respect to the accuracy-related penalty.4
Petitioner argues that the understatement of tax on his 1997
individual Federal income tax return was due to reasonable cause
and was made in good faith because of his reliance on his
accountant. We disagree.
The only alleged erroneous advice petitioner’s accountant
gave to petitioner related to the carryforward of the claimed
1996 NOL to 1997 instead of a carryback thereof to 1993, 1994,
and 1995. That advice, however, has no bearing on our holding
4The actual amount to which the sec. 6662 accuracy-related
penalty applies is subject to the Rule 155 computation.
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