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the Court that the Commissioner’s determination is incorrect.
Higbee v. Commissioner, supra at 446-447.
The accuracy-related penalty is not imposed with respect to
any portion of the understatement as to which the taxpayer acted
with reasonable cause and in good faith. See sec. 6664(c)(1).
The decision as to whether the taxpayer acted with reasonable
cause and in good faith depends upon all the pertinent facts and
circumstances. See sec. 1.6664-4(b)(1), Income Tax Regs.
Generally, the most important factor is the extent of the
taxpayer’s efforts to evaluate his proper tax liability. Id.
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 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
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