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regarding reasonable cause * * * or similar provisions. * * *
the taxpayer bears the burden of proof with regard to those
issues.” Id.
Petitioners concede certain determinations that respondent
made in the notice of deficiency and, as a result, have
acknowledged that an underpayment of tax exists for the year in
issue. Petitioners offered no evidence under section 6662 with
respect to those items raised in either the petition or the
answer. On the basis of the foregoing, we hold that respondent
has satisfied the burden of production under section 7491(c).
We further conclude that petitioners have failed to show
that their reliance on Mr. Ingram’s tax return preparation was
reasonable. Mr. Ingram admitted that he was not an accountant,
that he was unfamiliar with the computer software that he used to
prepare petitioners’ return, that he had made many errors with
respect to petitioners’ 2002 return, and that his rush to
complete the return also resulted in errors. Petitioners’
reliance on Mr. Ingram as their tax return preparer was clearly
unreasonable. Petitioners have, therefore, failed to carry their
burden of showing any reasonable cause for the underpayment of
tax for 2002. See sec. 6664(c)(1).
On the entire record before us, we hold that petitioners
have failed to carry their burden of proving that they are not
liable for an accuracy-related penalty for 2002 under section
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Last modified: March 27, 2008