Estate of Ronald Busch, Deceased, Rochelle Busch, Executrix and Rochelle Busch, et al. - Page 2

                                        - 2 -                                         
                                      CONTENTS                                        
                                                                      Page            
          MEMORANDUM FINDINGS OF FACT AND OPINION.......................2             
          OPINION OF THE SPECIAL TRIAL JUDGE............................3             
          FINDINGS OF FACT..............................................6             
          A. The Plastics Recycling Transactions......................6               
          B. The Partnerships.........................................9               
          C. Stuart Becker...........................................12               
          D. Petitioners and Their Introduction to the                                
               Partnership Transactions................................16             
          OPINION......................................................20             
          A. Section 6653(a)--Negligence.............................23               
               1.  The So-Called Oil Crisis...........................25              
               2.  Petitioners' Purported Reliance on Becker                          
                    and Miller.........................................29             
                    a.   The Circumstances Under Which a Taxpayer                     
                         May Avoid Liability Under Section 6653(a)(1)                 
                         and (2) Because of Reasonable Reliance on                    
                         Competent and Fully Informed Professional                    
                         Advice........................................31             
                    b. Miller........................................33               
                    c.  Becker........................................38              
                    d.   Conclusion as to Petitioners' Alleged                        
                         Reliance on Becker and Miller.................38             
               3. The Private Offering Memoranda.....................42               
               4. Miscellaneous......................................46               
               5. Conclusion as to Negligence........................49               
          B. Section 6659--Valuation Overstatement...................50               
               1. Concession of the Deficiency.......................51               
               2. Section 6659(e)....................................55               
                       MEMORANDUM FINDINGS OF FACT AND OPINION                        
               DAWSON, Judge:  These cases were assigned to Special Trial             
          Judge Norman H. Wolfe pursuant to the provisions of section                 
          7443A(b)(4) and Rules 180, 181, and 183.  They were tried and               
          briefed separately but consolidated for purposes of opinion.                
          Docket Nos. 1643-89 and 618-90, each of which concerns petitioner           
          Richard E. Snyder, were consolidated for purposes of trial,                 
          briefing, and opinion.  All section references are to the                   
          Internal Revenue Code in effect for the years in issue, unless              





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011