Debo Joel Ogungbade - Page 10

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          taxpayer’s efforts to assess his proper tax liability, including            
          the taxpayer’s reasonable and good faith reliance on the advice             
          of a professional such as an accountant.”  Higbee v.                        
          Commissioner, supra at 448-449.  Other circumstances that may               
          indicate reasonable cause and good faith include an honest                  
          misunderstanding of fact or law that is reasonable in light of              
          all the facts and circumstances, including the experience,                  
          knowledge, and education of the taxpayer.  Sec. 1.6664-4(b)(1),             
          Income Tax Regs.                                                            
               To prevail, the Commissioner must produce sufficient                   
          evidence that it is appropriate to apply the penalty to the                 
          taxpayer.  Higbee v. Commissioner, supra at 446.  Once the                  
          Commissioner meets his burden of production, the taxpayer bears             
          the burden of supplying sufficient evidence to persuade the Court           
          that the Commissioner’s determination is incorrect.  Id. at 447.            
               Petitioner has failed to keep adequate records or to                   
          substantiate properly the items in question.  The record                    
          indicates that there is a substantial understatement of tax on              
          petitioner’s return.  Respondent has provided sufficient evidence           
          to meet his burden of production.  Petitioner has not produced              
          evidence to prove that respondent’s determination of either                 
          negligence or, alternatively, a substantial understatement is               








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