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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
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Last modified: May 25, 2011