Howard v. Commissioner of Internal Revenue (1991)

Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir.1991).

“Where no reliable evidence exists in the record suggesting the nature of any advice given, a finding of negligence is not erroneous.” Howard, 931 F.2d at 582 (citation omitted).

See Howard, 931 F.2d at 582 (“Where no reliable evidence exists in the record suggesting the nature of any advice given, a finding of negligence is not erroneous.”).

Ultimately, the record is void of any evidence about the nature of any advice given, the basis for the advice, and the reasonableness of Dr. Altman's reliance on any advice. ''Where no reliable evidence exists in the record suggesting the nature of any advice given, a finding of negligence is not erroneous.'' Sacµs, 82 F.3d at 920 (quoting Howard v. C.I.R., 931 F.2d 578, 582 (9th Cir. 1991)).

The IRS’s “determination of negligence is presumed to be correct.” Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir.1991). 2 The corporation argues that no penalties are warranted because of Van Camp’s personal problems, the corporation’s financial difficulties, reliance on the corporate accountant and the complex nature of the tax law.

The IRS's "determination of negligence is presumed to be correct." Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir. 1991). 2 21 The corporation argues that no penalties are warranted because of Van Camp's personal problems, the corporation's financial difficulties, reliance on the corporate accountant and the complex nature of the tax law.

See Durrett v. Commissioner, 71 F.3d 515, 518 (5th Cir.1996); Goldman, 39 F.3d at 408 (citing Illes v. Commissioner, 982 F.2d 163, 166 (6th Cir.1992); Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir.1991)); Collins v. Commissioner, 857 F.2d 1383, 1386 (9th Cir.1988).

Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir.1991). 3 The Scovilles argue they were not negligent because they relied upon their accountant's advice.

"Where no reliable evidence exists in the record suggesting the nature of any advice given, a finding of negligence is not erroneous." Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir.1991).

Howard v. Commissioner, 931 F.2d 578, 581-82 (9th Cir.1991).

While reliance on professional advice can, in certain circumstances, provide a defense to a negligence penalty under section 6653(a), see Illes v. Commissioner, 982 F.2d 163, 166 (6th Cir.1992), cert. denied, — U.S. -, 113 S.Ct. 1579 , 123 L.Ed.2d 147 (1993); Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir.1991), such reliance must be objectively reasonable.

Under such circumstances, it would be irrational for the taxpayer to give up $10,000 in order to obtain tax savings of only $8,000: he would lose $2,000 in the transaction 7 Howard v. C.I.R., 931 F.2d 578, 581 (9th Cir.1991); Skeen, 864 F.2d at 94 ; Polakof, 820 F.2d at 323 8 Because the Tax Court's decision on remand may obviate our need to examine the other issues raised by the appellants on appeal, we decline to reach those issues at the present time

Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir.1991).

The taxpayer must show [he exercised] due care.” Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir.1991); accord Illes v. Commissioner, 982 F.2d 163, 166 (6th Cir.1992) (per curiam), cert. denied, — U.S.-, 113 S.Ct. 1579 , 123 L.Ed.2d 147 (1993).

See Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir. 1991) (affirming a penalty under section 6621(c)(3)(A)(v) where the Tax Court found the underlying transaction “to be a sham.”).

See Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir.1991) (“In a case ... where the taxpayers have been found to have entered into sham transactions without a primary profit motivation, they have failed to meet their burden of showing due care.”) Barlow claims that he relied on the advice that he received from his accountant and tax return preparer, Gerald Kabeck, prior to investing in Dickinson, and that reliance on this professional advice serves as a basis for finding …

See Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir.1991); Allen, 925 F.2d at 353 .

See Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir.1991) (stating that a finding of negligence is not clearly erroneous where the record does not show the exact nature of the professional advice). 26 For the foregoing reasons, the Tax Court's finding that the taxpayers did not carry their burden of proving that they acted as a reasonably prudent person is not clear error. 27 IV.

See Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir.1991).

See Howard v. Commissioner, 931 F.2d 578, 582 (9th Cir.1991); Skeen, 864 F.2d at 96 , adopted in Gomberg v. Commissioner, 868 F.2d 865, 866-67 (6th Cir.1989).

See Howard v. Commissioner , 931 F.2d 578 , 582 (9th Cir. 1991) , affg.

See also Howard v. Comm’r, 931 F.2d 578 , 582 (9th Cir.1991).

Compare, e.g., Howard v. Commissioner, 931 F.2d 578 , 582 (9th Cir. 1991) , affg.

Stroud v. United States, 906 F.Supp. 990, 996-97 (D.S.C.1995); see Howard v. Comm’r, 931 F.2d 578 , 582 (9th Cir.1991); Skeen, 864 F.2d at 96 .

See Howard v. Commissioner, 931 F.2d 578 , 582 (9th Cir. 1991) , affg.

See Howard v. Commissioner, 931 F.2d 578 , 582 (9th Cir. 1991) , affg.

See Howard v. Commissioner , 931 F.2d 578 , 582 (9th Cir. 1991) , affg.

See Howard v. Commissioner , 931 F.2d 578 , 582 (9th Cir. 1991) , affg.

See Howard v. Commissioner , 931 F.2d 578 , 582 (9th Cir. 1991) , affg.

See Howard v. Commissioner , 931 F.2d 578 , 582 (9th Cir. 1991) , affg.

See Howard v. Commissioner , 931 F.2d 578 , 582 (9th Cir. 1991) , affg.

See also Howard v. Commissioner , 931 F.2d 578 , 582 (9th Cir. 1991) , affg.

See also Howard v. Commissioner , 931 F.2d 578 , 582 (9th Cir. 1991) , affg.