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Tax Court Holds that Good Faith Reliance on Long-Time Attorney (Not a Tax Expert) is Sufficient to Establish Reasonable Cause and Avoid Penalties

May 8, 2015 Penalties

In CNT Investors, LLC v. Commissioner, 114 T.C. No. 11 (2015), the Tax Court recently held that a retired mortician reasonably relied on the advice of his long-time corporate and estate planning attorney in participating in a Son-of-BOSS tax shelter transaction to divest real estate holdings. Although the court ruled that…