- 17 -
preparation of a tax return. Sec. 6662(c); Gowni v.
Commissioner, T.C. Memo. 2004-154. The term “disregard” includes
any careless, reckless, or intentional disregard. Sec. 6662(c);
sec. 1.6662-3(b)(1) and (2), Income Tax Regs. An accuracy-
related penalty will not be imposed with respect to any portion
of an underpayment as to which the taxpayer acted with reasonable
cause and in good faith. Sec. 6664(c)(1); sec. 1.6664-4(b),
Income Tax Regs. The Commissioner has the burden of production
with respect to the penalty, but the taxpayer retains the burden
of establishing reasonable cause. Sec. 7491(c); Higbee v.
Commissioner, 116 T.C. 438 (2001).
The determination of whether a taxpayer acted with
reasonable cause 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
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011