Thomas E. and Joan A. Bennett - Page 27

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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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