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Carmagnola to testify in these cases,7 but preferred instead to
rely solely upon his preliminary, ill-founded valuation
estimates. The Carmagnola reports were a part of the record
considered by this Court and reviewed by the Sixth Circuit Court
of Appeals in the Provizer case, where we held the taxpayers
negligent. Consistent therewith, we find in these cases, as we
have found previously, that the reports prepared by Carmagnola
are unreliable and of no consequence. Petitioners are not
relieved of the negligence additions to tax based on the
preliminary reports prepared by Carmagnola.
Petitioners' reliance on Mollen v. United States, 72 AFTR2d
93-6443, 93-2 USTC par. 50585 (D. Ariz. 1993) is misplaced. The
taxpayer in Mollen was a medical doctor who specialized in
diabetes and who, on behalf of the Arizona Medical Association,
led a continuing medical education ("CME") accreditation program
for local hospitals. The underlying tax matter involved the
taxpayer's investment in Diabetics CME Group, Ltd., a limited
partnership which invested in the production, marketing, and
distribution of medical educational video tapes. The taxpayer's
personal expertise and insight in the underlying investment gave
him reason to believe it would be economically profitable.
Although the taxpayer was not experienced in business or tax
matters, he did consult with an accountant and a tax lawyer
7 Carmagnola has not been called to testify in any of the
Plastics Recycling cases before us.
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