Jose Calvao - Page 12

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          demonstrate a taxpayer acted with reasonable cause and in good              
          faith.  Neonatology Associates, P.A. v. Commissioner, 115 T.C.              
          43, 98-99 (2000), affd. 299 F.2d 221 (3d Cir. 2002); Freytag v.             
          Commissioner, 89 T.C. 849, 888 (1987), affd. 904 F.2d 1011 (5th             
          Cir. 1990), affd. 501 U.S. 868 (1991); see sec. 1.6664-4(c)(1),             
          Income Tax Regs.  However, a taxpayer’s reliance upon the advice            
          of a professional does not automatically constitute reasonable              
          cause.  Neonatology Associates v. Commissioner, supra at 98-99;             
          see sec. 1.6664-4(c)(1), Income Tax Regs.  For a taxpayer to                
          reasonably rely on the advice of a professional, the taxpayer               
          must show:  (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.  Neonatology Associates v. Commissioner, supra at 98-             
          99.                                                                         
               Petitioner testified he relied on his accountant, Mr.                  
          Beauregard, to prepare his return, and Mr. Beauregard had                   
          prepared his returns since 1993 without incident.  However,                 
          petitioner did not call Mr. Beauregard as a witness, nor did he             
          introduce evidence which would establish that Mr. Beauregard                
          possessed the requisite expertise.8  Because petitioner has not             

               8  Petitioner did not begin his gambling activity until                
          2002, and his underpayment of tax arose from claimed deductions             
                                                             (continued...)           




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