A tax CPA fails to set a shining example in Tax Court:
Petitioner has not demonstrated that there was reasonable cause for the underpayment and that he acted in good faith. Petitioner is a C.P.A. and holds a master’s degree in accounting and taxation. Yet when asked by the examining agent to provide documentation to substantiate his claimed business expenses, he failed to do so. Petitioner asserted that this was not negligence; rather, “it’s more or less when you’re starting out doing something, like a medical doctor doing operations or maybe a lawyer representing somebody in the courtroom, you have a lot to learn. You do make mistakes here and there.” We find petitioner’s cavalier attitude unacceptable. This is not what a reasonable person would do, particularly a C.P.A.
Or, one hopes, “a medical doctor doing operations.” Of course, it’s rarer for doctors to operate on themselves than for CPAs to do their own returns.
Cite: Bangura, T.C. Summ. Op. 2011-23
Tags: Judge Jacobs, tax court
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Joe, I can’t believe regulation didn’t make that guy more responsible.
He probably didn’t have a PTIN. That would have made all the difference.