- 20 -
that his family had invested in Plastics Recycling transactions.
Snyder did not seek advice from anyone other than Becker and
Miller. The tax and business risks detailed in the offering
materials did not concern Snyder. His position is that he
believed that any investigation on his part would be redundant
and a waste of money.
As for Busch, the record is devoid of any indication that he
made any effort independently to investigate the Partnership
transactions beyond attending the meeting with Snyder and Becker.
Petitioners in these consolidated cases never made a profit
in any year from their participation in the Partnership
transactions. Snyder did not see a Sentinel EPE recycler prior
to investing in the Partnership transactions, and there is
nothing in the record to indicate that Busch ever saw one.
Petitioners in each case do not have any education or work
experience in plastics recycling or plastics materials.
OPINION
We have decided more than two dozen of the Plastics
Recycling group of cases.9 The majority of these cases, like the
9 Provizer v. Commissioner, T.C. Memo. 1992-177, affd. without
published opinion 996 F.2d 1216 (6th Cir. 1993), concerned the
substance of the partnership transaction and also the additions
to tax.
The following cases concerned the addition to tax for
negligence, inter alia: Spears v. Commissioner, T.C. Memo. 1996-
341; Stone v. Commissioner, T.C. Memo. 1996-230; Reimann v.
Commissioner, T.C. Memo. 1996-84; Bennett v. Commissioner, T.C.
(continued...)
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