- 39 -
and in good faith depends on the pertinent facts and
circumstances, including the taxpayer’s efforts to assess his or
her proper tax liability, the knowledge and experience of the
taxpayer, and the reliance on the advice of a professional. Sec.
1.6664-4(b)(1), Income Tax Regs. When a taxpayer selects a
competent tax adviser and supplies him or her with all relevant
information, it is consistent with ordinary business care and
prudence to rely upon the adviser’s professional judgment as to
the taxpayer’s tax obligations. United States v. Boyle, 469 U.S.
241, 250-251 (1985). Moreover, a taxpayer who seeks the advice
of an adviser does not have to challenge the adviser’s
conclusions, seek a second opinion, or try to check the advice by
reviewing the tax code himself or herself. Id.
Petitioners received professional assistance in preparing
their 2000 tax return. The return was prepared and signed by a
representative of Deloitte & Touche, and we are satisfied from a
review of the return petitioners supplied the return preparer
with all relevant information. We likewise conclude petitioners
relied on their return preparer to accurately and properly
prepare their return for 2000. We find nothing in the record to
indicate it was unreasonable for petitioners to accept the advice
of their return preparer. Our holding sustaining respondent’s
determinations on the substantive issues in dispute does not, in
and of itself, require holding for respondent on the penalty.
Page: Previous 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 NextLast modified: May 25, 2011