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We also find that this mistake should not give rise to an
accuracy-related penalty under Internal Revenue Code section
6662(a) (2004). Monk provided correct information to the
accountant (he gave him all the information he had), and the
mistake was a result of his accountant’s entirely understandable
error. That’s all Monk needs to show under section 1.6664-
4(b)(1) of the Income Tax Regulations. See, e.g., Westbrook v.
Commissioner, 68 F.3d 868, 881 (5th Cir. 1995), affg. T.C. Memo.
1993-634.
When all the evidence is considered, the picture becomes
clear that Monk’s relationship with Maney regarding Chuck’s Place
is truly that of a landlord/tenant. Because this will trigger
various computational adjustments,
Decisions will be entered
under Rule 155.
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Last modified: March 27, 2008