- 7 -
LaVerne v. Commissioner, 94 T.C. 637, 652-653 (1990), affd.
without published opinion 956 F.2d 274 (9th Cir. 1992), affd.
without published opinion sub nom. Cowles v. Commissioner, 949
F.2d 401 (10th Cir. 1991); Marine v. Commissioner, 92 T.C. 958,
992-993 (1989), affd. without published opinion 921 F.2d 280 (9th
Cir. 1991).
Based upon our review of the instant record, we find that
petitioners' reliance on Booker was not reasonable. During 1984,
Booker worked as an agent for Encore, selling its tax shelters at
a commission rate of 20 percent of receipts. Booker v.
Commissioner, T.C. Memo. 1996-261. He received $13,986 in
commissions from Encore with respect to his 1984 sales. Id. As
previously stated, reliance on representations by insiders or
promoters is an inadequate defense to negligence. Further,
reliance on professional advice must be objectively reasonable.
Chamberlain v. Commissioner, supra at 732; Goldman v.
Commissioner, 39 F.3d 402 (2d Cir. 1994), affg. T.C. Memo. 1993-
480. Moreover, taxpayers may not rely on someone with an
inherent conflict of interest. Chamberlain v. Commissioner,
supra at 732; Goldman v. Commissioner, supra at 408.
Additionally, taxpayers must be able to show that the adviser
reached his or her decisions independently. See Leonhart v.
Commissioner, 414 F.2d 749 (4th Cir. 1969), affg. T.C. Memo.
1968-98. As an agent for Encore, Booker had an inherent conflict
of interest, and, as a result, petitioners cannot show that
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